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AFD gives Uganda €37.1m for power transmission line

Uganda will receive €37.1 million (about $44.2 million) from the Agence Française de Dévelopement (AFD) after the two parties signed a financing agreement for the upgrading of a key transmission line.

The financing of the 400 kV transmission line upgrade project will cover a distance of 135km between the towns of Masaka and Mbarara, according to a statement from the AFD. At the end of the upgrade, it is expected the transmission line will help in the evacuation of power from different sources and enable exports of electricity to neighbouring countries such as Rwanda and the Democratic Republic of Congo.

Germany’s KfW is the co-financier of this project, which follows feasibility studies that were financed by the European Union Infrastructure Trust Fund three years ago.

Uganda continues to face a lot of challenges in the transmission of its power. Many electricity generation projects such as Karuma and Isimba hydro power plant are expected to come on line over the next nine months, with worries that the transmission network might not be able to evacuate all this power.

Government has come up with policies that will compensate large consumers that are able to put up power distribution networks. Also, the Nile Equatorial Lakes Subsidiary Action Programme regional interconnection project is expected to ease on the burden of the transmission network.

Proparco, FMO lend €40 million to SCOUL

Meanwhile, Sugar Corporation of Uganda, the third largest sugar plant in Uganda, recently received €40 million from France’s Proparco to finance a new 26MW co-generation power plant.

According to the financial arrangement, Proparco granted a €20 million loan and catalyzed funds from the Dutch development bank, FMO, which contributed a similar amount to the project.

The new power plant, FMO said, “will allow the company to produce green electricity at a competitive price to meet its own needs and to be sold to the national grid.”

The generation of the electricity will be done by burning bagasse, a residue of sugarcane. Electricity generation from the use of bagasse has become popular, attracting a number of factories into the industry, which has in turn shrunk the margins of the older firms from the sale of sugar.

Comments

-1 #1 ZACHARY LOMO 2018-05-22 21:20
I am worried that France is tactfully digging in our country and by the time we shall wake up from our slumber and greed, we shall realise that we have lost everything to French control as they have done to all their former colonies!

Who the people in government that the French are using to stealthily establish a foothold in our country?
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0 #2 kabayekka 2018-05-24 01:29
LOMO I am with you there especially that when Highly indebted very poor countries cannot pay these debts these rich countries forgive them twice or three times so that they do not fall in debts again.

What happens next is the poor countries fall heavily in more debts and blame it all to the rich Nations.

We Africans are in an economic trap of which even if we pray to God 10 times we do not seem ever going to come out of it.
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