Uganda and South Sudan Secure $260M in Funding for Electricity Interconnection Project

The new interconnection will enable the exchange of approximately 624 GWh of electricity annually, expanding access to reliable electricity for 286,710 people in South Sudan.

The Board of Directors of the African Development Fund (ADF) has approved loans and grants totaling $260 million to fund a transformative electricity interconnection project between Uganda and South Sudan. The decision, made on 13 December 2024 in Abidjan, marks a significant step towards enhancing regional energy integration and economic cooperation in East Africa.

The ADF, the concessional arm of the African Development Bank Group, will contribute $153.66 million. This includes a $119.21 million loan to Uganda and a $32.50 million grant to South Sudan. Additionally, the Nile Basin Initiative will receive a $1.95 million grant from the ADF. The European Union will provide a €48.93 million grant to South Sudan, while the Ugandan government has committed $17.44 million in matching funds.

The project aims to integrate South Sudan into the East African Power Pool (EAPP) network, addressing persistent electricity shortages and improving reliability and affordability of power supply in South Sudan. Simultaneously, Uganda will benefit from increased electricity exports and expanded cross-border energy trade.

The initiative encompasses five key components:

1. Transmission Line Construction: A 299-kilometer 400 kV electricity interconnection line from Olwiyo (Uganda) to Gumbo (near Juba, South Sudan), with 149 km in South Sudan and 150 km in Uganda.
2. Substation Development: Construction of two 400/132/33 kV substations at Gumbo and Biba, plus the expansion and upgrading of the Karuma and Olwiyo substations.
3. Distribution Networks and Last-Mile Connections: Installation of local distribution networks with 1,000 last-mile electricity connections to expand household access.
4. Capacity Building and Coordination: Implementation of project administration, capacity building programs, and a study on electricity service costs for South Sudan.
5. Resettlement and Gender Inclusion: A resettlement action plan focusing on restoring livelihoods and promoting gender equality.

The new interconnection will enable the exchange of approximately 624 GWh of electricity annually, expanding access to reliable electricity for 286,710 people in South Sudan. It is expected to lower electricity tariffs for end-users in South Sudan, create at least 50 permanent jobs (15 for women) and 1,000 temporary jobs (300 for women) during the construction phase.

Bhebhe Themba, Country Manager for South Sudan at the African Development Bank, emphasized the broader impact of the project, stating:

"The project is essential for unlocking business opportunities, catalyzing local industry, and fostering the production of goods. It will generate jobs for youth and women, reduce poverty, and strengthen resilience, contributing to peace and stability in South Sudan."

This landmark project, managed under the Nile Equatorial Lakes Subsidiary Action Programme (NELSAP), builds on a 2015 memorandum between Uganda and South Sudan to address South Sudan's energy deficits and promote regional economic integration.