Uganda Begins $121m South Sudan Power Interconnection Project

(Image Credit: Nile Post)

Uganda has commenced implementation of the South Sudan–Uganda Power Interconnection Project (SUPIP) after securing UA 91.7 million, equivalent to about US$121 million, from the African Development Fund (ADF) to finance the Ugandan component of the regional electricity project.

The financing, together with counterpart funding from the Ugandan Government, will support the construction of high-voltage transmission infrastructure linking Uganda's electricity grid to South Sudan.

The project is expected to facilitate cross-border electricity trade, strengthen Uganda's transmission network in the north and provide South Sudan with access to more reliable and potentially lower-cost electricity.

The Government, through the Ministry of Energy and Mineral Development (MEMD), in collaboration with the Ministry of Finance, Planning and Economic Development, Uganda Electricity Transmission Company Limited (UETCL) and the African Development Bank Group (AfDB), held the technical launch of Uganda's component of SUPIP.

The milestone follows the fulfilment of conditions required for the ADF financing to become effective and for the first disbursement to Uganda, as well as the establishment of the Project Implementation Team.

Power trade between Uganda and South Sudan

According to Baba Fataja of the African Development Bank, the bank financed studies that paved the way for the proposed interconnection, which is intended to establish an electricity trading link between the two countries.

Fataja said South Sudan continues to face challenges in accessing reliable electricity, with heavy dependence on diesel-powered generation contributing to high electricity costs.

“South Sudan is really struggling to have a reliable supply of electricity, which is very expensive because they depend on diesel,” Fataja said.

He said the interconnection would provide South Sudan with an opportunity to access electricity from Uganda while creating an additional market for Uganda's available generation capacity.

“With the cooperation of the two countries, there is an opportunity for them to get a cheaper source of energy from Uganda, and at the same time Uganda can export excess energy that they produce,” he said.

Fataja added that the project could eventually contribute to wider regional electricity trading as additional countries become interconnected.

299-kilometre transmission line

SUPIP is designed to integrate South Sudan into the Eastern Africa Power Pool (EAPP), supporting regional electricity trade and allowing participating countries to share available generation capacity.

The overall project involves the construction of approximately 299 kilometres of 400-kilovolt double-circuit transmission line between Olwiyo in Uganda and Juba/Gumbo in South Sudan, together with associated substations and supporting infrastructure.

Uganda's component will cover approximately 150 kilometres of 400kV transmission line.

This will include about 118 kilometres from Olwiyo Substation to Bibia and a further 32 kilometres from Bibia to the South Sudan border.

The Ugandan component will also include construction of a new 400/132/33kV Bibia Substation, upgrading of the existing Olwiyo Substation to 400/132/33kV and extension of the Karuma Substation to facilitate the evacuation of electricity from Karuma towards Olwiyo.

Daniel Okelo, Head of Grid Development and Planning at the Ministry of Energy and Mineral Development, said implementation of the project is expected to run from 2026 to 2029.

The infrastructure is expected to strengthen Uganda's northern transmission network and improve the country's capacity to move electricity to regional markets.

For South Sudan, the interconnection is expected to reduce reliance on costly fossil-fuel-based electricity generation and improve access to electricity for households, businesses, industries and public institutions.

For Uganda, the project is expected to create an additional regional market for electricity generated domestically, particularly during periods when generation capacity exceeds local demand.

Increased electricity exports could also generate additional revenue while strengthening Uganda's participation in the regional electricity market.

With financing conditions now fulfilled, implementation will focus on activities required to advance the project towards construction.

These include mobilisation of the Project Supervision and Management Consultant, completion of environmental and social safeguard requirements, including the Resettlement Action Plan (RAP), finalisation of the transmission route and procurement of Engineering, Procurement and Construction (EPC) contractors.

Uganda and South Sudan will coordinate the procurement and implementation of the cross-border infrastructure, while each government will remain responsible for its respective component.

The technical launch also brought together implementing institutions and development partners to align on financial management, procurement, environmental and social safeguards, monitoring, reporting and coordination arrangements.

Officials clarified that the technical launch should not be confused with the full ceremonial launch of the regional project, which is expected to take place at a later stage after further progress has been made on procurement and other implementation activities.

The African Development Fund financing for Uganda forms part of a broader financing arrangement involving the two governments and development partners. The South Sudan component is also receiving co-financing support involving the European Union.

Once completed, the interconnection is expected to strengthen electricity connectivity between Uganda and South Sudan and contribute to the broader development of regional power trading under the Eastern Africa Power Pool.

Source: https://nilepost.co.ug/businesses/373481/uganda-begins-121m-south-sudan-power-interconnection-project