Cabinet has approved government borrowing of US$70.73million from the Islamic Development Bank to (IDB) for implementing the Grid Rural Electrification Project.
“Cabinet has, therefore, authorized the Ministry of Finance, Planning and Economic Development to proceed to Parliament, as soon as possible, to seek approval for borrowing of the US$70.73 million from Islamic Development Bank, for implementing the Grid Rural Electrification Project,” a statement released by Information and National Guidance Maj. Gen. Jim Muhwezi reads.
The statement disclosed that the project will be implemented through extending the national electricity transmission backbone to 15,807 new consumers by 2022.
The move is intended to meet the increased power needs of Uganda’s rapidly growing economy.
“The objective now is to improve the connection level beyond the current 20% in rural areas.
The proposed Grid Rural Electrification Project aims to provide sustainable power supply to rural areas in all regions in Uganda.”
The project will further provide sufficient power transfers from the existing hydro-electric power stations to meet the growing electricity demand. It will also reduce transmission losses by improving system efficiency, stability and reliability.