The African Development Fund (ADF) has approved a $153.66 million grant to Uganda and South Sudan for the development of an electricity interconnection project.
Forming part of a total $260 million in funding for the project, the ADF – the concessional lending arm of the African Development Bank – will provide a loan of $119.21 million to Uganda and $32.5 million to South Sudan.
“The project is essential for unlocking business opportunities, catalyzing local industry and the production of goods,” stated Bhebhe Themba, Country Manager of South Sudan at the African Development Bank.”
The project features five main components, which includes the construction of a 299km electricity interconnection line between the village of Gumba in South Sudan and the town of Olwiyo in Uganda. The project will also include the construction of two substations, which will be situated at Gumbo and the border village of Biba.
The project also includes upgrades to the existing Karuma and Olwiyo substations. including the installation of distribution networks, project administration, capacity building and a resettlement action plan.
With aims to integrate South Sudan into the East African Power Pool network, the project will enable the exchange of 624 GWh per year of energy between the two countries. Set to reduce greenhouse gas emissions and bring electricity access to over 285,000 people, the project will also reduce electricity tariffs for end users and create a minimum of 1,050 permanent and temporary jobs during construction and operation.
