Mbarara Masaka transmission line

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Uganda's electricity supply is affected by both the low capacity of the national transmission line network and the inadequate regional integration with the electricity grids of neighboring countries. This hinders the development of a regional electricity market, as interstate electricity trading is only possible to a limited extent. Potential for the expansion of renewable energies in the region therefore remains untapped. In order to enable secure and low-loss electricity trading and to efficiently ensure supply in the country, an efficient regional transmission network must be created. The proposed 220 kV transmission line between Mbarara and Masaka is part of the Nile Equatorial Lakes Subsidiary Program (NELSAP), a regional program to build a cross-border electricity network that will, in the medium term, connect the countries of East Africa from Ethiopia in the north to Burundi in the south, thus creating the conditions for regional electricity trading. Under the regional leadership of the Nile Basin Initiative (NBI), the countries bordering the Nile Basin have begun to plan and implement such a regional network at 220 kV level. As part of NELSAP, cross-border lines are being built between member states to improve access to electrical energy in the region and thus contribute to economic development and poverty reduction. The line also improves the supply to western Uganda and is therefore a central component of the expansion plan for Uganda's national high-voltage grid. The target group is primarily private households and businesses in the Mbarara - Masaka region that are connected to the electricity grid and will benefit from an improved electricity supply. In addition, other customers will be connected to the electricity grid through supplementary measures as part of the project (electrification project of the AfD, financed by the EU ITF). The population not connected to the electricity grid also benefits indirectly from the improved electricity supply to central facilities. As part of the NELSAP, consumers throughout East Africa will also benefit from a more reliable electricity supply and lower generation costs as a result of improved interstate electricity trading. The project sponsor is the Ugandan transmission company UETCL. The total cost of the project (excluding the rural electrification component) is estimated at EUR 85 million. Part of the financing (EUR 37 million) will be provided by the AfD through an interest-subsidized loan, and the Ugandan government will provide EUR 13 million. Participation by the German Federal Financial Supervisory Authority with an interest-subsidized loan of up to EUR 35 million is therefore necessary to ensure total financing. The project is to be implemented as co-financing together with the AfD as part of the Mutual Reliance Initiative (MRI).