Gov’t to Borrow shs 220 bn for Mirama-Kabale Electricity Line

Cabinet has approved a proposal to borrow (us$ 83, approved 750, no rx 000) from the Islamic Development Bank (IDB) to finance the construction of the 132 kv mirama-kabale electricity transmission line and distribution project, Chimp Corps have learnt.

The project will extend the national electric grid by construction of 85km of 132KV transmission line backbone from Mirama 132/33KV substations to the proposed new 132/33KV-2×40 MVA substation in Kabale town, 904 km of 33 KV and 131 Km of low voltage (LV) network in 121 villages.

Information Minister, Rose Namayanja says, “The project aims to provide sustainable power supply in the project area by providing for sufficient power transfers from the cheap hydro-electric power in central Uganda to meet the electricity demand in the region, The project is critical to facilitating the implementation of the rural electrification program, reducing high transmission losses, and improving system efficiency, stability and reliability.”

“It will also contribute towards addressing some of the sector challenges by providing the national grid electricity supply and reduce the use of small isolated electricity with small diesel fuel generators, meeting the huge investments required for electricity transmission and distribution, contributing to increasing the national electricity access rate of 17% and 100% by 2017 and 2040 respectively and help overcome low access rate to electricity in Uganda,” the Minister adds.

Cabinet has also authorized the Minister of Finance, Planning and Economic Development to proceed to parliament in line with Article 159 of the Constitution, to obtain authorization to borrow.

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