The government of Uganda and Germany signed a finance agreement worth €75 million (about Shs284.7 billion) for power transmission.
Uganda is currently constructing two hydroelectricity power dams in Karuma and Nsimbe, which when completed, will provide more electricity for domestic and industrial use.
The State Minister for Planning, Mr David Bahati, who disclosed this during the signing ceremony in Kampala, said the agreement signed covers two projects that the government intends to work on in the energy sector.
These projects include Mbale-Bulambuli transmission line constituting €40m(Shs138b) and Mbarara-Masaka transmission line which constitutes €35m (Shs133 billion).
Bahati said, “These projects are in line with the government priorities and objectives, as laid out in the National Development Plan two. One of the objectives under the energy sector is to expand the electricity transmission grid network.”
He added, “This will be done through building of transmission lines to evacuate power from generation plants. This is what the two projects are set to achieve.”
Uganda’s power coverage currently is 20.5 per cent. Mr Bahati forecasts that the electricity coverage will be at 40 per cent in the next 40 years.
Although power tariff are high for both the domestic and industrial use in Uganda, Mr Bahati said after the completion of Karuma and Nsimbe dams, power tariffs will come down.