8 October 2007 – A loan of $28.63 million is to be offered by the Japanese government for the construction of the Bujagali Interconnection Project. The project involves building a transmission line from the 250MW Bujagali hydropower station to Kawanda, Nalubaale, Tororo and Mutundwe.
The loan, offered by the Japanese Bank of International Cooperation, will co-finance the project, along with a loan of $110 million from the African Development Bank.
The Bujagali project, already under development by Bujagali Energy Ltd, is a joint venture between U.S based Sithe Global and Industrial Promotion Services, an affiliate of the Aga Khan Fund for Economic Development.
In other news from Uganda, it has been reported that in an effort to reduce the cost of doing business, the government is set to intervene in the energy sector, Ugandan Prime Minister, Prof Apolo Nsibami has announced.
"Growth in industrial output declined to 4.5% in 2005/06. This is not taken lightly by the Government. I wish to assure Uganda Manufacturers Association members that we are doing all that is within our means to solve the energy problem. The energy crisis in Uganda has forced many businesses to close and the prime minister continued
"I assure local and foreign businesses that the Government is committed to maintaining policies which will enhance trade and commerce."