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The grant agreement was signed in Entebbe between Uganda’s finance minister Maria Kiwanuka and Japanese ambassador to Uganda Kazuo Minagawa. The funds will be directed at financing projects that are part of the third phase of Uganda’s rural electrification project.
Minagawa said, “It is expected that 38,400 people will benefit from the project through increased electrification in the country, which suffers from serious electricity crisis with its rural electrification rate being as low as seven per cent.”
Kiwanuka noted, “The new connections include 93 primary schools, 13 secondary schools, Buyinja health centre IV and other social amenities in addition to the household connections.”
Kiwanuka further said that in the second phase of the project, Uganda will see the extension of a 33kVA electricity distribution line to serve 4,800 new customers.
The 130km power connection will benefit more than 38,000 people in the districts of Mayuge, Iganga, Bugiri, Namayingo and Busia in eastern Uganda.
The Japanese ambassador said that the power line extension will be part of the bilateral cooperation between Uganda and Japan.
Minagawa added that the project for rural electrification, which has kicked off with consultations and survey works, will take nine months to complete.
The two also signed a US$10.5mn grant agreement to provide improved water sources for displaced people in Acholi sub region in northern Uganda.