Log in

MPs approve $11.3m Kuwaiti electricity loan

Parliament has okayed government’s proposal to borrow up to $11.32 million from the Kuwait Fund for Arab Economic Development to finance the construction of the 33kV and 11kV power distribution lines in the six districts of Kiryadongo, Kibaale, Nebbi, Bushenyi, Kasese and Rukungiri.

Members of Parliament on the committee of the national economy went on a field visit to Kiryadongo to assess the viability of the project. In November, the MPs released a report that called for “speedy fulfilment of effectiveness conditions of the financing agreement of this loan in order for the committed funds to be released by the Kuwait Fund on time...”

The distribution line will cover 285km (of which 25km is 11kV and 260km 33kV) in the six districts.

The Kuwaiti loan is non-concessional, and is priced at a fixed interest rate of 1.5 per cent per annum on the disbursed. The money from Kuwait will cover 71 per cent of the total project cost, with the government of Uganda coming up with the balance.

Uganda continues to face challenges of evacuating power from the point of production. While the country has placed a lot more attention on producing power, there appears to be huge gap in distributing that power to consumers.

Comments are now closed for this entry