In Summary

Reason for delay. The plan will be delayed because of failure for the government and Exim Bank to agree on some conditions.

Kampala. The plan to extend power to all sub-counties across Uganda is likely to delay as uncertainty among government officials continues in regard to the project implementation.

The delay is a result of failure by government and Exim Bank of China to agree of certain conditions regarding the $212m (Shs784b) loan needed for the project.

Mr Matia Kasaija, the Finance minister, said the loan approval has faced some challenges because due to failure to agree on certain areas.
“We sorted out one problem with Exim Bank [but] there is a clause which we did not agree on and since these things are still confidential I cannot disclose them now,” he said, emphasising he would soon sign the loan if they agree on the conditions.

Early last year, government announced it had acquired a loan from China to extend power to all sub counties across Uganda.
The project is expected to cover 547 sub-counties focusing on trade and health centres, schools and economic zones.

The move seeks to increase power accessibility from 22 per cent to at least 60 per cent in the next 10 years.

Ms Irene Muloni, the Energy minister, in October said the loan was one of the channels through which government is seeking ease electricity accessibility.

The project, she said will be implemented by Rural Electrification Agency and a contractor had already been secured to start work last November.

Mr Godfrey Turyahikayo, the Rural Electrification Agency executive director, on Monday said the issues around the loan had been finalised, adding “government and Exim Bank had to ensure that everything is agreed upon before signing on Tuesday (today).

The discussions, Mr Turyahikayo said, had started in February 2018 and work is expected to start in April.

Yesterday Mr Kasaija, told Daily Monitor he had not signed the loan because he did not have information on whether the bureaucrats had sorted out some of the contentious issues.
“I am not aware of any signing. I am not aware if the bureaucracies have ended,” he said.