Uganda and Germany has signed a financial agreement worth US$83.6m for power transmission deal.
Uganda government is at the moment constructing two hydroelectricity power dams in Karuma and Nsimbe, which it believes when completed, will provide more electricity for domestic and industrial use.
The State Minister for Planning, David Bahati, speaking during the signing of the power transmission deal in Kampala said that signing of the agreement covers two projects that the government intends to work on in the energy sector which includes; Mbarara-Masaka transmission line which constitutes US$39m and Mbale-Bulambuli transmission line constituting US$36m.
“These projects are in line with the government priorities and objectives,” said David Bahati. “As laid out in the National Development Plan two. One of the objectives under the energy sector is to expand the electricity transmission grid network, which will be done via building of transmission lines to evacuate power from the generation plants “he added.
However, State Minister for Planning urges the government to push with the ministry of Energy and UETCL, who are to implement the projects. Compensation of people who will be affected by the project will have been completed to ensure the projects take off to ensure the value for money.
Currently, Uganda power coverage is 20.5%. however, the electricity coverage is expected to raise and attain 40% nations power generation capacity in the next 40 years to come. Power tariffs in Uganda have gone up for both the domestic and industrial use in the country.
Once the Karuma and Nsimbe dams are completed, power tariffs are expected to down as well. Delays in implementation of projects by the implementing agencies have had negative impact on the development programmes that government often comes up with.
Uganda is currently promoting the use of renewable sources of electricity such as geothermal energy as alternatives to hydropower and fossil fuels generation.
