The Board of Directors of the African Development Fund authorized a number of loans and grants to Uganda and South Sudan to implement an electrical energy interconnection challenge between the 2 neighbouring nations in East Africa.
The challenge, authorized on 13 December 2024 in Abidjan will price a complete of $260 million, of which $153.66 million shall be offered by the African Development Fund (ADF), the concessional lending arm of the African Development Bank Group.
The ADF offered a mortgage of $119.21 million to Uganda and a grant of $32.50 million to South Sudan. The Nile Basin Initiative, of which each nations are members, receives an extra $1.95 million grant from the ADF. The European Union is offering a grant of 48.93 million euros to South Sudan, whereas the Ugandan authorities had dedicated matching funding equal to $17.44 million.
The goal is to combine South Sudan into the East African Power Pool community to handle electrical energy shortages and issues related to reliability and affordability of electrical energy provide in South Sudan. The challenge will even present surplus producing capability on the Ugandan market and can broaden electrical energy buying and selling between Uganda and South Sudan.
The challenge has 5 predominant parts. development of a 299-km electrical energy interconnection between Gumbo village, close to Juba (capital of South Sudan), and Olwiyo in Uganda (149 km in South Sudan and 150 km in Uganda); development of two new 400/132/33 kV substations, one at Gumbo and the opposite at Biba on the border with Uganda; and the enlargement and upgrading of the Karuma and Olwiyo substations. Other parts embody: the set up of distribution networks and 1,000 last-mile connections; challenge administration and administration; capability constructing and joint coordination, together with a examine of the price of electrical energy companies for South Sudan; and, lastly, a resettlement motion plan, together with the restoration of livelihoods and an motion plan for gender equality.
Uganda and South Sudan signed a memorandum in 2015 on the creation of a 400 kV transmission line between Olwiyo and Juba with the intention to handle electrical energy deficits in South Sudan. The intention was to supply a clear, dependable and inexpensive electrical energy provide to South Sudan whereas growing electrical energy export revenues for Uganda. The memorandum mandated the Nile Equatorial Lakes Subsidiary Action Programme (NELSAP) to coordinate challenge implementation.
The new interconnection will allow alternate of common 624 GWh of vitality between the 2 nations every year, lowering greenhouse gasoline emissions and bettering entry to electrical energy for 286,710 individuals in South Sudan.
Project implementation will cut back kilowatt-hour tariffs for finish customers in South Sudan, according to the suggestions of a examine into the price of electrical energy service. It will even create at the least 50 everlasting jobs (together with 15 for ladies) and 1,000 non permanent jobs (together with 300 for ladies) throughout the development and operation phases of the challenge.
Bhebhe Themba, Country Manager for South Sudan on the African Development Bank, commented:
“The project is essential for unlocking business opportunities, catalysing local industry and the production of goods. It will create jobs for young people and women, helping to reduce poverty by strengthening resilience and addressing the main drivers of conflict and fragility in South Sudan, in line with the strategies pursued by the Bank.”
Source African Development Bank Group
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