Parliament Okeys $ 11Million Loan To Power Northern Region

The Parliamentary Committee on National Economy has Tuesday cleared government on a request to access two loans aimed at increased access to electricity to several parts of the country.

The request was presented before the committee by officials from the Ministry of Finance, here Planning and Economic Development led by Min. Gabriel Ajedra Aridru and the Minister of Energy and Mineral Development Irene Muloni.

The officials took time convincing members on the need to approve the loans; while stressing that the acquired money will help improve the lives of Ugandans.

The two proposals presented before Parliament include a need to borrow US$ 11.32 Million from the Kuwait fund for Arab Economic Development and a sum of US$ 100 Million from the International Development Association (IDA).

The Ministry officials explained to the committee that the loan from Kuwait seeks to finance the construction of the 33Kv and 11kv distribution project in six districts of Kiryandongo, doctor Kibaale, Nebbi, Bushenyi, Kasese and Rukungiri.

The second loan seeks to finance the grid expansion and reinforcement project in areas of Gulu, Lira, Nebbi, Arua, Kole, Oyam and Nwoya.

“The project will help in the upgrade of transmission infrastructure, including a transmission line and substations with a focus to enabling increased electricity access and the need to accommodate the increasing demand for electricity,” noted Ajedra.

He observed that the projects will contribute towards addressing some of the sector challenges by providing the national grid electricity supply and thus reduce the use of small isolated electricity with small diesel fuel generators.


However, members earlier squeezed the officials to explain a total of US$ 5.5 Million that had not been accounted for in the Northern region project. This saw members up accusing officials of seeking to have the fund embezzled.

This was after a long exchange of words explained by the Minister that these were funds budgeted for the unforeseen changes in prices of commodities which explanation calmed down members who demanded that once the loan is acquired, it should be quickly absorbed to avoid incurring such expenses.

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