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Tuesday, 12 January 2016

France disburses to Uganda 51.7m euro

The Uganda government together with the French Embassy in Uganda and the French Development Agency (AFD) regional Representation in East-Africa last week signed three new financing agreements in 2015, for a total amount of 51.7 million euro.  The financing agreements were signed by Uganda Finance Minister Matia Kasaija  the French Ambassador Mrs Sophie MAKAME, and the Director of AFD in East-Africa, Yves Boudot. Two of the financing agreements are aimed at supporting rural electrification extension from the national grid to the local communities currently not accessing clean energy needed to spur sustainable economic and social development. The project will be implemented by Rural Electrification Agency for a total amount of 51.2 M €. It will include the North Western and Rwenzori service territories as well as the Mid-Western and South Western territories.  It will also target communities living in the neighbourhood of the 5 km footprints of Nkenda-Hoima 220 kV transmission line, the Masaka-Mbarara transmission line and the Muzizi Hydro power plant, all to be financed or co-financed by AFD. The total cost for the project amounts to 55.5 million euros, based on a soft loan (42.9 million euros) for the Medium Voltage (1,500 km) and Low Voltage (1,300 km), as well a grant (8.3 million euros through the EU-ITF Infrastructure trust fund) to reduce the connection costs and support capacity building. Government of Uganda will contribute up to 4.3 M€ dealing with land acquisition and compensation. This project is expected to significantly enhance the implementation of the Sustainable Energy For All (SE4ALL) initiative for which Uganda is a front runner. Under SE4ALL project, Uganda, the European Union, France and Germany strengthened their partnership in a Joint Declaration signed in New York on the 20th of May 2015, underlying their mutual commitment towards the development of Sustainable Energy in Uganda, along SE4ALL objectives. The third financing agreement is a 500,000 € grant to support some feasibility studies and capacity building activities, within the context of the forthcoming extension of water resources and water distribution in Masaka and Mbarara areas, under the NWSC company.

Source: East African Business Week