AfDB Releases Shs31.8 Billion Boost for Uganda Rural Electrification Completion

The African Development Bank Group has greenlit additional funding of €7.33 million, equivalent to about Shs31.856 billion, to wrap up compensation for those affected by the Uganda Rural Electricity Access Project (UREAP) Phase I.

Approved on April 7, this financing addresses a budget shortfall from updated costs and pending environmental commitments. It ensures full payments to impacted households and completes remaining electricity connections, advancing the project’s goals.

Launched in 2015, UREAP Phase I has connected 137,770 households—reaching around 670,000 people including businesses and institutions—to the national grid in rural and peri-urban areas.

“This ensures no community is left behind, honoring commitments and delivering lasting impact,” stated Aleymahu Wubeshet-Zegeye, the Bank’s East Africa Regional Manager for Energy.

On the same day, AfDB also approved UREAP Phase II, budgeted at €104.39 million (Shs453.678 billion). This phase, funded mainly by the Bank with contributions from Climate Investment Funds and Uganda’s government, will build 624 km of medium-voltage and 2,154 km of low-voltage lines.

Over six years, it aims to add 259,723 connections for over 250,000 households, 3,000 businesses, and key facilities like schools and health centers, benefiting nearly 1.18 million people and promoting cleaner energy.

Uganda has boosted electricity access from 5% in 2002 to 51% in 2020, with generation capacity rising to 1,378 MW by late 2022.

Source: Daily Monitor