The 35 Million Euro financing agreement was signed this morning at the German Embassy in Kampala. Matia Kassaija, the Minister of Finance, Planning and Economic Development and the Managing Director Uganda Electricity Transmission Company Limited Willy K. Kiryahika represented the government of Uganda.
The government has secured a loan of 158 Billion Shillings from Germany to upgrade the electricity line from Masaka to Mbarara.
The 35 Million Euro financing agreement was signed this morning at the German Embassy in Kampala. Matia Kassaija, the Minister of Finance, Planning and Economic Development and the Managing Director of Uganda Electricity Transmission Company Limited Willy K. Kiryahika represented the government of Uganda.
Jenny Herrmann, Press, Education and Cultural Affairs officer at the German Embassy of the Federal Republic of Germany says the 400 kV transmission line upgrade project will cover a distance of 135km between Masaka and Mbarara.
A press statement issued by the German Embassy says the project will increase power reliability in the Central and Western regions in order to boost the economy and support access to energy.
The Statement says the transmission line is key in consolidating the interconnection between Uganda and its neighboring countries Kenya, Rwanda, Tanzania, and the Democratic Republic of Congo (DRC) under the on-going regional interconnection project - Nile Equatorial Lakes Subsidiary Action Plan (NELSAP).
The German Head of Cooperation, 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.”
The facility will be jointly disbursed by the German-owned Bank based in Frankfurt KfW and the Alternative for Germany (AFD).
According to KRONBERG Germany has supported Uganda over the last 15 years to undertake critical infrastructure development which includes improving the grid in the isolated West Nile region, promoting energy-efficient cook stoves and accelerating access to renewable energy sources - mainly hydropower, biomass and solar.
“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.” She stated.
It is hoped the project will reduce dependence on wood and charcoal that accelerates deforestation, land degradation, and air pollution.
The loan agreement comes days after Minister Matia Kassaija unveiled a deficit budget of 34 Trillion shillings.