Western Nile Rural Electrification Project

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The Electricity Regulatory Authority (ERA) granted license to the West Nile Rural Electrification Company Limited (WENRECO) to generate, distribute and sell power to the districts of Nebbi and Arua in March 2003. WENRECO was a project company formed by Industrial Promotion Services (IPS Group) with 55% and Rural Maintenance Ltd. (RML) with 45%. As a part of the contract, WENRECO had to invest US$ 11.3 million to rehabilitate 3.5 MW diesel power plant and to increase number of connections to at least 4000 customers from the current figure of 1000. The Norwegian Agency for Development (NORAD) provided a US$4 million grant for a new high voltage electricity grid lines. Ministry for Energy and Mineral Development signed three agreements with the project company: an Implementation Agreement, a Rural Electrification Subsidy Agreement and an Asset Transfer Agreement. The Implementation Agreement defined the government of Uganda's support for the project while the Asset Transfer Agreement and Rural Electrification Subsidy Agreement provided subsidies which would ensure affordable tariffs for the people of Arua and Nebbi Districts.