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  • Signing of Japanese ODA Loan Agreement with Uganda: Contributing to better power conditions in Kampala, the capital city, through electricity transmission grid improvements

Press Releases

April 27, 2018

Signing of Japanese ODA Loan Agreement with Uganda: Contributing to better power conditions in Kampala, the capital city, through electricity transmission grid improvements

photosigning ceremony

On April 26, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of the Republic of Uganda in Kampala, the capital city, to provide a Japanese ODA loan of up to 13.659 billion yen for the Kampala Metropolitan Transmission System Improvement Project.

In order to stabilize and improve the reliability of the power supply in the Greater Kampala Metropolitan Area, the project will construct new 220kilovolt substations, upgrade existing 132 kilovolt substations, strengthen the urban electricity transmission grid and provide a mobile substation for emergency response. The loan funds will be allocated to public works for constructing and upgrading substations, strengthening the electricity transmission grid, procuring a mobile substation, and consulting services (including basic design work, bidding assistance, and construction supervision).

Although the Greater Kampala Metropolitan Area has a population of approximately 3.5 million people and a substantial demand for power, the power transmission and distribution capacity are still insufficient, resulting in frequent unplanned power outages due to power overloads. The Government of Uganda has addressed the immediate demand for power through initiatives such as the Project for Improvement of Queensway Substation (grant agreement signed in November 2014), but with a rising power demand due to recent population and economic growth, the power demand is expected to again exceed the supply capacity by 2020. In the Grid Development Plan (2014–2030), the Government of Uganda has given the highest priority to strengthening the transmission and substation capacity in the Greater Kampala Metropolitan Area, which is the center of the country’s power demand.

By providing power transmission and distribution facilities, the project should ensure a power supply that meets the demand through 2030, and is expected to make a large contribution in improving the power conditions in the Greater Kampala Metropolitan Area, including reducing power outages and stabilizing the supply of commercial power.

1. Terms and Amount of Loan

Project title Amount
(million yen)
Annual interest rate (%) Repayment
period
(years)
Grace
period
(years)
Procurement
Project Consulting services
Kampala Metropolitan Transmission System Improvement Project 13,659 0.01 0.01 40 10 General untied

2. Executing Agency
Uganda Electricity Transmission Company Limited
Address: Plot 10, Hannington Road, Nakasero, P.O. Box 7625, Kampala, Uganda
Phone: +256-414-233433/+256-414-233434, fax: +256-414-341789

3. Planned Implementation Schedule
(1) Completion of project: February 2022 – when the facilities are put into service
(2) Issuing of letters of invitation for consulting services (including basic design work): May 2018
(3) Tender announcement of initial procurement package for international competitive bidding on project construction:
Procurement package title: Package 1 (Kawala Substation Strengthening, 132-kilovolt Transmission Line, New Mukono Substation Construction) (tentative name)
Planned release date: April 2019

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