Infrastructure

AFD Funds Energy Projects To Improve Power Reliability



The Ugandan Government has commissioned some flagship energy projects for the rural West of the country and launched its Connections Policy.

The Agence Française de Développement (AFD) being the  key partner in this sector, offered  concessional loans of respectively USD 23M  and EUR 42.9 M to the Government of Uganda. The company financed part of the Nkenda-Hoima transmission line and its associated substations as well as a broad rural electrification program in Western and Southern Uganda.

AFD is also contributing to the Connections Policy, first by having taken part in the dialogue that led to the design of the Policy, and financing one of the pilot projects to subsidize connections, in accordance with this Policy.

According to Virginie Leroy, AFD Representative in Uganda: “France, via AFD, the Agence Française de Développement, proves and has proven for the last 20 years, to be a key partner for Uganda’s development.

After having supported the necessary increase of the national generation capacity that significantly improved power reliability and affordability in Uganda, AFD supports the Government of Uganda in improving transmission, distribution and increasing access. By promoting renewable energy we support both the Ugandan population and climate change resilience,” she said.

The project is co-financed by the Norwegian Agency for Development Cooperation. The Nkenda-Hoima line and associated substations are in agreement with Uganda’s overall energy policy to meet the energy needs of the population for social and economic development.

The transmission line is intended to facilitate the evacuation of hydroelectricity generated in the area and will serve in the longer term to improve power supply, quality and reliability in western Uganda.

AFD has financed a wide program of rural electrification in Western and Southern Uganda covering 24 districts, including Kasese. The Agency provided a concessional loan of EUR 42.9 M to build about 3,000 km of new low voltage and medium voltage lines.

Additionally, the company  participated in the dialogue that led to the design of the Connections Policy launched by the Rural Electrification Agency. The purpose is to subsidize the connection costs under the condition that households take charge of their own wiring.

The Agency supports furthermore this Connections Policy by implementing one of the pilot projects that intends to finance 65,000 new connections, thanks to a EUR 7.1 M grant delegated to them by the European Union.

The improvement of the rural areas electricity grid will result in a better economic development and a reduction of the inequalities between rural and urban areas: households, schools, health centers, markets and small businesses will get a subsidized connection to power that will improve livelihoods and wealth.

The commissioning ceremony was held by the Vice President of the Republic of Uganda, in the presence of the Minister of Energy and Mineral Development, the Ministers of State for Energy and for Agriculture, the Permanent Secretary for Energy, the Managing Director of Uganda Electricity Transmission Company Limited (UETCL), the Executive Director of the Rural Electrification Agency (REA), the Country Representative of AFD in Kampala, representatives from the Government of Uganda and from the Kingdom of Norway.

It was to launch, among others, the Nkenda-Hoima line and the Connections Policy.

 

AFD is an inclusive public financial institution and the main actor in France’s development policy. It makes commitments to projects that genuinely improve the everyday lives of people, in developing and emerging countries and in the French overseas territories. AFD works in many sectors – energy, health, biodiversity, water, digital technologies, training – and supports the transition to a safer, more equitable and more sustainable world.

 




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