PRESS RELEASE

Sustainable Energy for Uganda:
German EUR 35 million loan for the
Transmission Line from Mbarara to Masaka

The German Development Cooperation signed a concessional loan with the Government of Uganda to finance the Transmission Line from Mbarara to Masaka. The Minister of Finance, Planning and Economic Development, the Chief Executive Officer of Uganda Electricity Transmission Company Ltd and, in presence of the German Head of Cooperation, Mrs. Julia KRONBERG, the Director of KfW office in Kampala, Oliver JÜNGER, signed the EUR 35 million loan agreement on Thursday, 21 June 2018 in Kampala.

This is the second loan for that transmission line after French Development Cooperation, AFD, signed a first loan agreement of EUR 37,1 million with Uganda for the same project on 27 April 2018.

The 400 kV transmission line upgrade project will cover a distance of 135 km between the cities of Masaka and Mbarara. It will increase power reliability in the Central and Western regions of Uganda, a good way to boost the economy and support access to energy.

Consolidation of this segment is also a key in the interconnection between Uganda and its neighboring countries Kenya, Rwanda, Tanzania, and DRC. Thereby the transmission line supports the ongoing NELSAP (Nile Equatorial Lakes Subsidiary Action Plan) regional interconnection project.

“AFD and KfW are partnering to jointly finance this project” the German Head of Cooperation, Mrs. Julia KRONBERG, said. “This is yet another common achievement and a symbol of France and Germany cooperation’s and associated efforts to support Uganda’s development.”

Over the past 15 years, Germany has helped Uganda to:

• increase energy supply and efficiency,
• focus on renewable sources, mainly hydropower, biomass and solar thus reducing dependence on wood and charcoal that accelerates deforestation, land degradation and air pollution,
• improve the grid in the isolated West Nile region,
• promote energy efficient cook stoves.

Mrs. Julia KRONBERG: “As a result of all these programmes, Uganda’s infrastructure has improved greatly, and several thousands of new jobs were created. Upgrading the Masaka-Mbarara transmission corridor will enable Uganda to evacuate generated power internally within the country and will also allow exports of power.”