the CEO of the Electricity Regulatory Authority

The Ugandan Government has set its sights on connecting over 1 million citizens to the national power grid in the coming years. This ambitious initiative has gained momentum after the World Bank granted approval for the $630 million financing of the Hybrid Customer Connection Financing Framework project. This project aims to provide heavily subsidized power connections, particularly to those residing near existing power lines.

Under the framework, the government has taken steps to make power connections more affordable for Ugandans. The cost of a new customer connection without the need for poles has been reduced from Shs. 720,000 to Shs. 470,000. This reduction in cost is poised to make electricity access more accessible to a broader spectrum of citizens.

Hon. Ruth Nankabirwa, the Minister of Energy, shared this development on Friday during the 3rd Conference of the Installations Permit Conference, which took place at the premises of the Electricity Regulatory Authority in Kampala. She revealed that after extended negotiations, the World Bank approved the Project Implementation Plan, paving the way for rapid connections to commence over the next two years.

Nankabirwa acknowledged the initial concerns of the World Bank, particularly following the announcement that the Rural Electrification Agency would return under the Ministry of Energy’s purview as part of government restructuring efforts. The World Bank had reservations about the Ministry’s capacity to effectively implement the $630 million loan. However, Nankabirwa shared positive news: “But I am happy to inform you that we successfully negotiated with the World Bank and they passed PIP. By the 20th of last month, we were supposed to have started.”

The final mile connection costs have not only been substantially reduced but also further subsidized through a loan from the Uganda Development Bank. Nankabirwa revealed, “We have engaged with UDB on behalf of the customers and they accepted to give us a loan. So if you can’t raise the 470,000, you are required to raise at least 200,000 cash; and then you are connected and the 270,000 becomes a loan that will not accrue any interest, and is payable in 8 years. This is almost too good to be true.”

This groundbreaking initiative aims to connect around 1.3 million households to the national grid, while an additional 150,000 will be connected through off-grid solutions.

Addressing the conference, Ziria Tibalwa Waako, the CEO of the Electricity Regulatory Authority, stressed the crucial role of technicians in ensuring safe and effective installations. “You should know that your work is very important to us. If you fail, we all fail,” she emphasized.

Sarah Wasagali Kanaabi, the Chairperson of the Electricity Regulatory Authority board, highlighted the significance of the conference in promoting safe electricity access and consumption across the country. She expressed the agency’s commitment to enhancing power supply reliability and quality for domestic, commercial, and industrial consumers.

As Uganda advances toward its goal of expanding electricity access, this initiative marks a pivotal step in ensuring citizens benefit from improved energy connectivity and enhanced quality of life.