Updated September 18, 2025- Uganda has revealed plans of borrowing $358 million from regional and private lenders to fund its various projects, including the Uganda-South Sudan Interconnection Project. This information was revealed by a finance ministry official in Uganda.
The credit will be acquired from the African Development Fund, African Development Bank, Arab Bank for Development in Africa, and Standard Chartered Bank. This was revealed by the junior finance minister, Henry Musasizi while presenting the plan in parliament.
Other projects that will be funded by the loan include a road in the country’s northwest that will connect Uganda to DRC and expansion of clean water access.
Currently, Uganda is producing surplus electricity following the commissioning of a $1.7 billion hydropower dam last year. The country has been planning to export some of its electricity to energy-starved South Sudan.
Factsheet
Project name: Uganda-South Sudan Interconnection Project
Objective: To establish an electricity transmission line to connect the electricity grids of Uganda and South Sudan, facilitating power trade and improving electricity access in both countries, particularly in South Sudan.
Project components:
- Transmission line: Construction of a high-voltage transmission line from a major substation in northern Uganda to a substation in South Sudan.
- Substations: Construction or upgrade of substations at key connection points in both Uganda and South Sudan to facilitate power evacuation and distribution.
- Associated infrastructure: Includes access roads, communication systems, and other necessary support facilities.
February 24, 2025
African Development Bank’s Board of Directors approved financing of $154 million for the Uganda-South Sudan interconnection project. The funds will be provided to Uganda and South Sudan to ensure the project’s implementation between the two neighboring countries in East Africa. The project, approved in Abidjan will cost $260 million, of which $154 million will be provided by the AfDB. The rest will accumulate from the resources pooled by the respective countries and the European Union.
Objective
The objective of the project is to integrate South Sudan in the East African Pool Network. Through this, the nation will benefit from the problems caused by electricity shortages. Furthermore, the integration will address problems associated with reliability and affordability of electricity supply in South Sudan. Once implemented, the project will also provide surplus generating capacity on the Ugandan market. It is also expected to expand electricity trading between Uganda and South Sudan.
Also read:
Agreement signed for 400kV Olwiyo(Uganda)-Juba(South Sudan) power transmission line project
The Scope of Implementation of the Uganda-South Sudan Interconnection Project
The Uganda-South Sudan interconnection project entail five main phases to ensure its implementation. One of these includes the construction of a 299-kilometer electricity interconnection between Gumbo village in South Sudan and Olwiyo in Uganda. The distance between the two locations is 149 km in South Sudan and 150 km in Uganda. The second phase entails the construction of two new 400/132/33 kV substations. The substations will be placed in Gumbo and the other at Biba, near the border with Uganda. The third phase entails the expansion and upgrading of the Karuma and Olwiyo substations.
Other components entail the installation of distribution networks and 1,000 last mile connections. Moreover, it entails project administration and management and capacity building and joint coordination. The joint coordination phase will include studies on the cost of electricity services for South Sudan. Finally, a resettlement action plan which entails the restoration of livelihoods and an action plan for gender equality. “The project is essential for unlocking business opportunities, catalysing local industry and the production of goods,” noted Bhebhe Themba, Country Manager for South Sudan at the African Development Bank.
Also read:
Uganda-South Sudan electricity interconnection project in the offing
$252 Million Approved by AfDB for Uganda Rural Connectivity Upgrade
