In East Africa, the Ugandan government has entered into a finance agreement with the government of Germany, worth $84 million for the development of power transmission lines.
Speaking during the signing ceremony in Kampala on Tuesday, state minister for planning, David Bahati, said the agreement signed covers two projects that the government intends to work on in the energy sector, reports the Monitor.
Power transmission lines for hydropower plants
According to the media, government is currently constructing two hydroelectricity power dams in Karuma and Nsimbe, which on completion are expected to provide more electricity for domestic and industrial use.
With regards to the power transmission lines, it is reported that the power lines include the Mbale-Bulambuli transmission line, estimated to cost $44 million, and the Mbarara-Masaka transmission line, costing $39 million.
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 [in the NDP] 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.”
Bahati also appealed to those responsible for the implementation of the projects to also play their part in getting the projects in motion.
He said: “I want to urge the ministry of energy and UETCL, who are to implement the projects, that by the time we conclude the financing agreements, all the preparatory works including compensation of people affected by the project would have been completed to ensure the projects take off.”
According to the media, at present the power coverage in Uganda is sitting at 20.5%; however, Bahati is anticipating that the electricity coverage will be at 40% in the next 40 years.
Although power tariffs are high for both the domestic and industrial use across the country, the state minister said that after the completion of Karuma and Nsimbe dams, power tariffs will come down, media reported.
Currently, domestic consumers are reported to be paying about Shs626 ($0.184) per unit, while commercial power consumers pay about Shs566.9 ($0.166).
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