Gov’t seeks approval of US$ 638 mln to power households
KIRYADONGO-The Ministry of Energy and Mineral Development is pleading with Parliament to approve a US$ 638 million [Shs 2.4 trillion] loan from the World Bank to connect 1,700 households to the national electricity grid.
This was revealed on Saturday by the Minister of State for Energy Sirdronius Opolot Okassai who alongside the ministry’s other staff met more than 30 Members of Parliament in Karuma to bargain the loan deal.
The MPs on the Parliamentary Committee of the National Economy visited the Karuma hydropower project to ascertain its readiness for power distribution.
In an interview with the Cooperator, the minister explained that the MPs visited the power station as part of their oversight role, especially as government seeks the approval of the loan to be spent on distributing power to households.
He revealed that the loan request will be tabled before Parliament for discussion, adding that it would be prudent for the House to approve it to scale up electricity connections.
“We have invested a lot in generation [of power] but now we need to pass out this loan to enable us to take this power to the end consumers which include industries and households,” Minister Opolot explained.
He further explained that the new loan will address the new electricity connection policy where more than 1700 households in the country are projected to benefit from.
Bukedea County MP John Bosco Ikojo who is the chairperson of the Committee on National Economy, said US$ 198mln [Shs 732.6 billion] of the money in question loan will come as a grant.
He said the loan request was tabled to the committee by the Ministry of Finance on November 1, 2022 which he said is subject to scrutiny by the House.
“The Committee is monitoring the previous performances of the other funding to see whether it’s viable for the Parliament to add more money to the energy sector,” Opolot further explained.
The Kwania MP, Tonny Ayoo, also a member of the committee is hopeful that the loan will support the households to access power in a new policy of power connection.
The funding challenges have affected the provision of free connections since 2020, leaving a considerable backlog of applications pending connection.
According to 2022 half-year results for power distributor UMEME, customers connected were 1,693, even though the company projected numbers to strengthen in second half of 2022, following provision of Electricity Connection Policy [ECP] funding in the tariff.
Uganda has one of the lowest electrification rates in the world, so bringing electricity to more than 40 million Ugandans is a critical national and regional objective. Despite significant efforts over the last 20 years, the rate has remained low—around 24 percent.
Although power is available in Uganda, many communities, homes, and businesses do not have access to electricity due to expensive grid connection fees, including high house wiring costs.
https://thecooperator.news/tororo-processing-facilities-lie-idle-over-lack-of-electricity/
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