Kampala
7/11/07
 
AFDB GRANTS BUJAGALI HYDROPOWER PROJECT USD 29.7 MILLION IN LOAN

By Leo Odera Omolo
 
Ugandan Government is making concerted effort to accelerate the construction of Bujagali power project and has recently received a timely boost from the African Development Bank (AFDB) with the signing of a loan of USD 29.7 million (about Ushs 52 billion) to facilitate the implementation of the power interconnection Project.
 
A press release from the bank’s headquarters in Tunis said the agreement was signed last week officials of the ADB (AFDB) Group and the government of Uganda, is part of the estimated cost of USD 75, 84 million (Ushs 32.7 billion for the BIP.
 
“The common goal of the government of Uganda and the AFDB for the electricity sector is to improve the population’s access to electricity for the country’s social and economic development in an environmentally sustainable manner,” said Uganda’s Ambassador to Libya Mr. Moses Sebunya who represented his country at the signing ceremony in Tunis last week.
 
Sebunya said the project would provide adequate transmission capacity to provide electricity to consumers from the Bujagali power station, some 87 kilometers North East of the capital Kampala.
 
The project is being financed by the AFDB, the Japan Bank for International Cooperation and the Uganda Electricity Transmission Company Ltd.
 
It involves the construction of 100 km of power transmission units for the 250 MW dam for which the AFDB also approved a loan of USD 110 million (Ushs 192.5 billion) a month earlier making the Bujagali one of the Africa’s largest hydropower projects.
 
The total cost of the project is estimated at USD 735.5 million / Ushs 1.2 trillion), of which the AFDB’s contribution amounts to USD 139 million (Ushs 243 billion) for the dam and the transmission lines.
 
During a recent tour of the project site a AFDB President Donald Kiberuka said the bank was committed to assisting member countries in their efforts to further develop their energy potential.
 
‘’This is the time for Africa to harness its huge project hydro - energy potential,’’ he said.
 
The main project beneficiaries include power distribution utilities and households. Industrial and commercial electricity consumers connected to the national grid will benefit from improved reliability and lower cost of supply as a result of this multimillion Uganda shillings project.
 
In addition the Bujagali power project will deliver the energy required to supply an estimated 280,000 new customers that are expected to be connected.
 
Uganda could also benefit from the improved supply and export potential of the system.
 
The project is being financed by the ADF (38.3 per cent) the Japan Bank for International cooperation 38.3 per cent and the Uganda Electricity Transmission Company Limited 23.4 per cent.
 
The Bujagali Interconnection Project loan brings the Bank Group’s total cumulative commitment in the country to UA 911 million USD 1.42 billion of which UA 309 million USD 48.2 million has been disbursed.
 
The Bank commenced operation in Uganda in 1968 and has to date approved 302 operation for the country in agriculture (27 per cent, social sector, 19 per cent multi - sector, 14 per cent water, 8 per cent power, 6 per cent industry and mining, 3 per cent and 1 per cent in communication.
 
Ends.
leooderaomolo@yahoo.com .