Uganda launched construction in Kampala on Thursday, October 22, of a 347 kilometre high-voltage power line designed to carry output from the Karuma plant to the east of the country, Greater Kampala and regional grids.
The project covers a 400 kilovolt double-circuit connection across 15 districts, together with new substations and upgrades to existing facilities. Construction is expected to take 36 months, according to information released at the ceremony and reported by Nile Post and Daily Monitor.
Standard Chartered confirmed a EUR342.5 million loan to finance the commercial contract for the line and its substations. The bank is the lead arranger and original lender, with support from Sweden’s export credit agency EKN and the Swedish Export Credit Corporation. Poland’s KUKE is providing reinsurance.
The line is intended to evacuate part of the electricity generated by the 600 megawatt Karuma hydropower plant towards demand centres including the Tororo Industrial Park. Uganda’s finance ministry said in January that the infrastructure should also reduce losses linked to power that is generated but cannot be fully transported.
The project is meant to improve supply reliability for households and businesses in eastern Uganda and Greater Kampala. It is also expected to expand the capacity needed for regional electricity trade as the country seeks stronger links between generation assets, industrial areas and neighbouring grids.
EKN provisionally classified the project as Category A because of potentially significant social and environmental risks. The agency identified land acquisition, resettlement, community safety, biodiversity and effects on land and water among the issues requiring oversight. UETCL’s board chair called for fair compensation for people affected by the route.