The German government has restated its commitment to fund the power sector in Uganda by announcing that it will provide a low-interest loan of up to 40million Euros (Approx. Ushs148bn) to Uganda for the financing of the Lira – Gulu – Agago transmission line in Northern Uganda.
A statement from the Embassy of the Federal Republic of Germany noted that the transmission line will traverse an approximate distance of 170 km and help to improve the electricity supply in the region considerably.
The transmission line will evacuate power from three hydro power plants, which are lined up for construction along the rivers Agago and Achwa. The hydro power plants will have a total capacity of 106 MegaWatts and will serve the growing demand in Northern Uganda.
Germany’s commitment to provide the 40million Euros loan has increased total commitments in loans and grants from the German Government to Uganda to 275million Euros within the period of 2013 to 2015.
The Germans and French are now major players in Uganda’s power sector after the French revealed their Agence France de Development is providing significant funding for transmission lines in Western Uganda.