The Chinese government has given Uganda a loan worth $212 million to be disbursed towards rural electrification.
Under the rural electrification programme, government’s plan is to increase the rural electrification access rate to 51% by 2030 and 100% by 2040, reports PML Daily.
Speaking at the signing of loan agreement last week, the Chinese ambassador to Uganda, Zheng Zhuqian underlined that the East African country currently has a national electrification rate of about 15% and a rural area of about 7%.
“So the project of bridging the demand supply balance gap through the accelerated Rural Electrification Programme is a good example for China-Uganda Economic Cooperation,” said Zhuqian.
Accelerating rural electrification
Zhuqian said: “Through the rural construction of the project, the rural electrification coverage will be greatly improved, the rural electrification process will be accelerated, the local electrification level will be significantly improved, and the lives of local residents will also be improved.”
The minister of Finance, Planning and Economic Development, Matia Kasaija, acknowledged that Uganda’s electricity rural network coverage is still low.
“This loan worth $212.669 million will enable government to accelerate the access to clean and modern electricity while spurring growth in demand through the electrification of all unserved sub-counties nationwide,” Kasaija stated.
Kasaija added: “This financing is timely as it will enable Government of Uganda; Construct 3839 km of medium voltage networks, Construct 5921 km of low voltage networks, Install and commission 3403 distribution transfers, Install and connect 168,335 single phase consumers and 4,254 three phase consumers.”
The finance minister said government has also set-out to extend clean and modern electricity to all citizens by 2040.
To achieve this, it’s planned that at least 30% of all citizens should have access to electricity by 2020.