Home Africa Ugandan government to spend $2 billion on power connection

Ugandan government to spend $2 billion on power connection


Uganda plans to spend at least $2 billion in the next five years to connect more people to its electricity grid and raise con­nection rates, a senior execu­tive at sole power distributor Umeme Ltd said on Thurs­day.
Ugandan officials say they want to boost electric­ity supply rapidly to pow­er an industrialisation drive. In recent years they have cut subsidies for consumers and introduced a tariff adjust­ment mechanism.
The country said in 2015 it planned to increase its elec­tricity generating capacity to at least 1500 megawatts (MW) over the next three years from 850 MW.
Sam Zimbe, deputy man­aging director of Umeme, said to go hand in hand with this, the country aimed to in­crease the number of electric­ity connections to three mil­lion in the next four years from about 900,000 at pres­ent.

“We intend to spend at least $800 million just on that ac­tivity alone, constructing low voltage lines, and looking at last-mile connections,” Zim­be told an East African pow­er industry conference.
“Right now we have start­ed the programme. In the first two years for that matter, we plan to spend at least $400 million, half that amount,” he told Reuters after his pre­sentation.
He said the increased con­nections would raise the ac­cess rate to 40 percent of the population from 20 percent at present.
Zimbe said Uganda planned to spend another $1.2 billion over the next five years to improve other infra­structure on the grid.

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