The government of Japan has advanced a US $21.4 million loan to Uganda to improve the Queens way power substation in Kampala.
“The project aims at contributing to the reduction on the risk of stabilizing power outage and stabilizing power supply in the Kampala metropolitan area,” the Japanese Ambassador to Uganda Junzo Fugita said moments after signing a memorandum of understanding for the loan.
He added that Japan was increasing funding to the energy sector in order to make it more effective and to boost industrialization which relies more on power supply as a key driver for advancement.
“In so doing the loads in sub stations on neighboring substations like Lugogo and Mutundwe will be reduced and consequently, the risk of unstable power supply and distribution.”
The project is part of commitment of the Japanese government through Japan International Corporation Agency (JICA) to support development partners.
JICA Uganda chief representative Kyosuke Kawazumi noted that Uganda’s energy needs are very huge and therefore pose an urgent need to bridge the gap in supply and demand for energy.
Finance minister Maria Kiwanuka who signed the loan on behalf of Uganda government welcomed the project saying it will help in addressing the energy challenge. Kiwanuka acknowledged that an improved Queens-way power station is a solution to the constant power blackouts in Kampala.
“With this grant the government of Uganda will be able to implement a rand of efficacy measures to minimize system and commercial losses as well as frequent power outages,” Kiwanuka said.
This isn’t the first time Japan has invested in the energy sector in the country.
During the construction of Bujagali power dam, it offered government USD29.67 million for the interconnection of electric grid of the Nile