0 km

Jinja

Gulu

Lira

Jinja

Kampala

SOUTH SUDAN

RWANDA

TANZANIA

KENYA

DEMOCRATIC

REP. OF CONGO

Kampala

500 km

GDP PER CAPITAUSD 1,334

HDI164/187

POPULATION37.6M

IMPACT 1.5 million of teqCO

2 saved

every year.

2,600 jobs created during the

construction phase.

loan

USD 72.8M

Bujagali Energy Limited

2007

ongoing

UGANDA

KEY INDICATORS

Rural electri#cation program

bene#ting 800 families.

Increase in country’s generation

capacity by nearly half.

Developing hydropower capacity

BACKGROUND

Uganda is one of the least developed coun-

tries in terms of access to electricity. With

less than one inhabitant in ten connected to

the grid, consumption is one of the lowest

in the world. This is due to tariffs among the

highest in East Africa and the major lack of

generation infrastructure. It is exacerbated

by the strong increase in demand (8% a

year), as a result of population growth in

the country (3.3% a year) and its economic

growth (over 6% in 2014).

The authorities have set out to bridge

this gap by continuing to develop hydro-

power, the country’s main source of energy

supply, by raising its generation capacity

to 2,000 MW by 2017, against almost

600 MW in 2013.

THE PROJECT

In 2007, PROPARCO and AFD allocated a

USD 72.8m loan to finance the construc-

tion of a run-of-river hydropower plant

on the Nile with a generation capacity of

250 MW. This project, for a total amount of

EUR 902m, has benefited from the support

of a number of other donors, including the

International Finance Corporation (IFC),

European Investment Bank (EIB), African

Development Bank (AfDB), and the Dutch

and German financial institutions FMO and

DEG/KfW.

Since it was commissioned in 2012, the

Bujagali dam has raised power generation in

Uganda by over 40% and has considerably

reduced power outages. The project has

also supported initiatives that benefit local

communities: programs for rural electrifica-

tion, microfinance and access to drinking

water, construction of a health center and

school…

Press contact

© BEL

ENERGY

Uganda is one of the African countries

with the lowest per capita electricity con-

sumption. Approximately 72% of the elec-

tricity generated is consumed by 15% of the

population, mainly in urban areas.

The country’s development is limited by the

marked power generation deficit related to a

structural underinvestment and the severe

droughts over the past decade. Furthermore,

the high level of peak time activity of the 2

thermal power plants, which run on heavy

fuel oil, has a high generation cost and a

very negative impact on the environment.

Uganda’s significant renewable energy re-

sources are largely underexploited.

The authorities have committed to bringing

about a change in this field: the Vision 2040

program, which sets out Uganda’s long-term

objectives, and 2nd National Development

Plan, which runs until 2020, define energy

as a priority tool to promote ecologically

sustainable economic and social devel-

opment.

Improving the energy sector is a priority for the sustainable development

of the country. AFD has developed a financial tool which facilitates the im-

plementation of projects with a positive impact on the environment.

Supporting local bank financing for

renewable energy projects

UGANDA

The project is part of a regional program

called SUNREF East Africa promoted by

AFD in Kenya, Tanzania and Uganda.

It plans to offer several Ugandan banking

institutions an overall facility of subsidized

credit of EUR 35m. This financing is ear-

marked to fund the diverse small-scale

renewable power generation projects

(based on solar energy, biomass / biogas,

small-scale hydropower plants) and energy

efficiency projects of the selected banks’

clients.

A technical assistance program has been

planned for both companies initiating pro-

jects and Ugandan banks in order to help

them become eligible.

As with the other SUNREF credit lines in the

region, the initiative will benefit from support

from technical assistance managed by the

Kenya Association of Manufacturers (KAM),

in close cooperation with the Uganda Asso-

ciation of Manufacturers (UMA).

The total amount of the funded projects is

estimated at EUR 47m, including EUR 35m

via the overall facility.

· Economy: increased business competitiveness and job creation thanks to the optimization of energy consumption;

· Environment: reduction of fossil fuel consumption and decrease in atmosphe-ric emissions, with a reduction in CO2 emissions estimated at 30,000 tons a year;

· Institutions: more effective implementation of Uganda’s public policies by ac-tors in the field thanks to the many local institutions involved in the project .

BACKGROUND PROJECT DETAILS

· Financial tool:

Loans

· Amount commited:

35M€

· Partner:

European Commission

· Date of start: 2016

IMPACTS

GDP PER CAPITA

696,4 USD

HDI

164 / 187

POPULATION

37,8 M

KEY INDICATORS

CONTACT

afdkampala@afd.fr

January

2016

This project is being

conducted with

financial participation

from the European

Union. However, the

opinions expressed in this document

may under no circumstances be consi-

dered as reflecting its official position.

At 83 kWh/year, Uganda has one of the lowest

electricity consumption rates per capita in the

world. At the end of 2014 the installed electricity

generation capacity of Uganda was an estimated

850 MW. This represents an increase of 264.38

MW (49%) since the commission and the full oper-

ation of the 250 MW Bujagali Energy Limited.

Peak electricity demand is currently at 550MW

with and increase of 10% annually. Nationally, an

estimated 14.8% of the population has access to

electricity (7% in rural areas).

Construction of Hoima-Nkenda transmission line and associated

substations.

Nkenda-Hoima 220kV (226km)

Power Transmission line and associated substations

KEY FACTS

CONTEXT

UGANDA

The proposed Nkenda-Hoima line and associated

substations conforms to the overall energy policy of

Uganda which aims to meet the energy needs of

Uganda’s population for social and economic deve-

lopment.

The transmission line aims to facilitate the evacua-

tion of power generated in the project area of

Hoima and will further serve to improve power

supply and quality and reliability in western Ugan-

da. The total capacity to be evacuated from this

region is 150 MW with still other plants to be deve-

loped within the area such as the Muzizi hydro po-

wer plant.

The total cost is 96 million Dollars with a loan con-

tribution of 23 million Dollars from the AFD pro-

vided through the Government of Uganda. The pro-

ject is co-financed by the Government of Norway.

34.5 Million

in 2011

161 over 187

in 2012

ENERGY

uganda.afd.frFebruary,

2014

DESCRIPTION

The purpose of the project is to provide ade-

quate transmission infrastructures to meet the

energy needs of Ugandans and improve power

supply quality and security within the region. It

will include the financing of the following compo-

nents :

· Construction of a new substation in Hoima

· Extension of the Nkenda substation

· Building of terminal points and interfaces

in the Fort Portal substation

The issue of access for the population within the

area of the transmission line will be addressed

through another project that will aim to increase

connectivity especially for the rural poor through

the provision of subsidies and mechanisms to

enhance affordability.

REMINDER CONTACT

OUTIL DE FINANCEMENT : Prêt FMI

MONTANT: 75 M €

DATE D’ALLOCATION : Juillet 2012

PARTENAIRES: Gvt d’Ouganda

ENERGY

CONTACT PRESSE

Magali Mévellec

mevellecm@afd.fr

uganda.afd.frFebruary,

2014

IMPACT

ENERGY

Uganda has 37.8 million inhabitants, in-

cluding 83% in rural areas. While GDP

increases at an annual average rate of 5%,

the country needs to make progress in terms

of energy in order to boost its economy.

Power generation is currently insufficient

due to structural underinvestment.

The Ugandan Government is conducting a

proactive policy in the sector: the Vision

2040 program and 2nd National Development

Plan, which runs until 2020, provide for sev-

eral measures in terms of energy. The idea

is to invest in infrastructure in order to even-

tually provide a nationwide electricity supply.

This process is supported by a number of

international donors, including the World

Bank and African Development Bank.

Much remains to be done in the field. In the Southwest of the country, the cities of Masaka and Mbarara (total of 300,000 in-habitants) are only connected via a satu-rated 132 kV line. In addition, Uganda is under strong pressure to build this missing link in the Kenya-Uganda-Rwanda intercon-nection, which is also necessary for the de-

velopment of a regional electricity market.

In a country where the energy sector is a priority and its infrastructure

weak, AFD is supporting the construction of a transmission line and the

extension of substations between 2 large cities in the Southwest.

Building a high-voltage power line to reinforce regional interconnec-

tions

UGANDA

The project supported by AFD aims to build

a high-voltage line between the cities of

Masaka and Mbarara. It has 4 components:

· The construction between Masaka

and Mbarara of a 130 km-long line, initially commissioned at 220 kV then raised to 400 kV by 2025;

· The extension to 220 kV of the substations in Masaka and Mbarara, which will also subsequently be raised to 400 kV;

· The supervision and control of works by an assistance to the contracting authority at the national operator, the Uganda Electricity Transmission Company Limited (UETCL);

· Capacity building for UETCL for the

operation and maintenance of the 400 kV lines.

The project amount is estimated at EUR 84.7m. AFD is providing EUR 37.1m of fi-nancing in the form of a loan allocated to the Republic of Uganda, which will subse-quently be reallocated to UETCL. The re-mainder of the financing is provided by KfW, via a EUR 35m loan, and the Ugandan Gov-

ernment.

· At regional level: improvement in the reliability and security of the electri-city supplied in the Southwest of Uganda, particularly in the Mbarara district;

· At national level: improvement in the technical and operational perfor-mance of the national transmission grid;

· At interregional level: facilitation of the Kenya-Uganda-Rwanda power inter-connection by aligning the voltage of the Masaka-Mbarara section with the other sections.

BACKGROUND PROJECT DETAILS

· Financial tool:

Sovereign concessional loan

· Amount commited:

37,1M€

· Partner:

KfW

· Date of start: 2016

IMPACTS

GDP PER CAPITA

696,4 USD

HDI

164 / 187

POPULATION

37,8 M

KEY INDICATORS

CONTACT

afdkampala@afd.fr

January

2016

ENERGY

Uganda has very high poverty indexes. De-

spite an annual economic growth rate of 7%,

the country’s development remains limited

by the weak energy sector and infrastruc-

ture.

The Government wants to exploit Uganda’s

strong hydropower potential, which stands at

4,500 MW. The Uganda Electricity Genera-

tion Company Limited (UEGCL), which is

wholly State-owned, is the public company

in charge of developing power generation

infrastructure. A 5-year National Develop-

ment Plan was also adopted in 2010. It pro-

vides for the construction of new infrastruc-

ture, like the Bujagali hydropower plant,

which was commissioned in 2012.

Hydropower development also contributes to limiting the use of thermal power plants run-ning on heavy fuel oil, which are, however, necessary to meet demand. They are char-acterized by an excessive generation cost and a very negative impact on the envi-

ronment.

Energy is a key development factor. AFD is financing and supporting the

construction of a hydropower plant in the West of the country, a region

where there are particularly strong energy needs.

Building a hydropower plant to meet

the country’s energy needs

UGANDA

AFD is supporting a project to build a pow-

er plant on the River Muzizi, a river with a

high head height.

After 3 years of works, the power plant will

have a generation capacity of 44.5 MW. It

it will also partly meet the daily peaks ob-

served between 19:00 and 23:00. UEGCL

will be its contracting authority.

The project is based on two components:

· An infrastructure component, which

comprises the construction of a hydro-

power plant, a substation, a 3.6 km-long

intake channel and a regulation basin

covering an area of approximately

130,000 m3;

· A consultancy component, with the re-

cruitment of a design office, which will

supervise and control the implementation

of the works.

The total project cost is estimated at EUR 110m. It will be financed by AFD in the form of a EUR 45m loan, KfW with EUR 44m and the Ugandan Government

with EUR 21m.

· Infrastructure: improvement in the quality of the energy supplied in the coun-try, reduction of power outages;

· Economy: recruitment of 300 to 500 workers during the works;

· Attractiveness: it is hoped that new private investors will arrive in the sector;

· Territory: rebalancing of the distribution of power plants, which are currently concentrated in the East and center of the country;

· Social: improvement in the electricity supply, which will especially benefit poor communities;

· Environment: increase in the proportion of renewable energy.

BACKGROUND PROJECT DETAILS

· Financial tool:

Sovereign concessional loan

· Amount commited:

45M€

· Partner:

KfW

· Date of start: 2016

IMPACTS

GDP PER CAPITA

696,4 USD

HDI

164 / 187

POPULATION

37,8 M

KEY INDICATORS

CONTACT

afdkampala@afd.fr

January

2016

ENERGY

Uganda’s electricity access rate stood at

14% in 2013. With an average of 75 kWh a

year, per capita consumption is one of the

lowest in Africa. These low indexes clearly

reflect the need to develop the sector in

Uganda. 400,000 connections a year would

be necessary to absorb the growth rate of an

ever-increasing population.

The Government has become aware of the

need to develop power infrastructure. In July

2013, it approved a 2nd Rural Electrifica-

tion Strategy and Plan (RESP 2). The ob-

jective is to increase the energy access rate

in rural areas to 7% by 2013 and to 26% by

2020: this would represent a total of 1.28

million additional users connected to the

grid.

This plan will be implemented by the Rural

Electrification Agency (REA), for a total cost

estimated at over USD 950m. It is also sup-

ported by the World Bank via its Energy for

Rural Transformation Program, the third

phase of which covers 2013-2019.

Weak power infrastructure hinders Uganda’s economic growth. AFD is

supporting a project to extend and reinforce the rural electrification net-

work in the West of the country.

Extending the rural electrification network to boost the economic dy-

namism of West regions

UGANDA

The project has a total amount of EUR

55.5m and involves financing the extension

and reinforcement of the power distribu-

tion grid in the Northwest and and South-

west regions of Uganda.

It comes in addition to the World Bank’s

action and has 4 components:

· The extension of the medium and

low-voltage grid, with the connection of 70,000 households;

· The supervision and control of the

works by international consultants;

· The connection and metering of new

users with adequate equipment;

· Support to private distributors in es-

tablishing viable and sustainable tariffs, and to REA for its institutional strengthening.

AFD is supporting the project via a EUR

42.9m loan allocated to the Ugandan Gov-

ernment. An additional EUR 8.3m are being

provided by the European Commission. The

remaining EUR 4.3m are being provided by

the Ugandan Government.

· Reinforcement of the medium and low-voltage grid in rural areas;

· Improvement in access to energy for populations, administrative centers, com-

panies, factories and local social services in rural areas;

· Boost to economic development in the territories concerned;

· Reduction of inequalities between rural and urban areas.

BACKGROUND PROJECT DETAILS

· Financial tool:

Sovereign concessional loan

· Amount commited:

42,9M€

· Partner:

European Commission

· Date of start: 17/ 11 / 15

IMPACTS

GDP PER CAPITA

696,4 USD

HDI

164 / 187

POPULATION

37,8 M

KEY INDICATORS

CONTACT

afdkampala@afd.fr

January

2016

This project is being

conducted with

financial participation

from the European

Union. However, the

opinions expressed in this document

may under no circumstances be consi-

dered as reflecting its official position.