Uganda receives $212 million loan for rural electrification

Image: Eagle Online

The Chinese government has given Uganda a $212 million loan to increase access to electricity as part of Uganda’s Rural Electrification Program.

Through the program, the government hopes to meet the country’s supply needs by increasing access by 51 percent by 2030 and achieve universal electrification by 2040.

At the signing ceremony held last week, the Chinese ambassador to Uganda, Zheng Zhuqian said the loan spoke to the economic collaboration between the two countries.

“The project of bridging the demand supply balance gap through the accelerated Rural Electrification Program is a good example for China-Uganda Economic collaboration,” he said.

Uganda’s Minister of Finance, Planning and Economic Development, Matia Kasaija said the financing was timely and would see the construction of 3,839km of medium voltage networks, 5,921km of low voltage networks, the installation and commissioning of 3,403 distribution transfers, the installation and connectivity of 168,335 single phase consumers and 4,254 three phase consumers.

With the low access to electricity, the finance minister also added that the country hopes to see a minimum of 30 percent of its citizens gaining access to electricity by 2020.