African Development Bank (AfDB) through Uganda Development Bank (UDB) has pledged over Shs256bn to support Electricity Cooperatives.
The offer was declared during the wrap-up of a five-day meeting whose objective was to engage the Government of Uganda on key interventions such as Technical and advisory support to Uganda for private sector participation in the transmission segment and Review or revamp the capacity support program for the energy sector.
Speaking during the meeting, the Permanent Secretary, Ministry of Energy and Mineral Development (MEMD), Ms Irene Bateebe reiterated the government’s position on the need to fast track electricity connectivity and stimulate demand by exploring innovative approaches to enhancing the power value chain.
“This includes a strategy that carves out a role for private sector participation in the operations and financing of much-needed infrastructure and the development of a sector-wide least-cost integrated resource plan,” she said.
“The ministry has put in place plans to improve the reliability of the transmission and distribution network. As regards the transmission network, the MEMD is considering the option of opening up the sector to private investment with support from AfDB. A private investment framework will be needed to guide the process. This development underpins the role that Public-Private Partnerships (PPPs) shall play in expediting the development of Uganda’s energy sector.”
Ms Bateebe thanked the AfDB for accepting to provide technical and advisory support to the Government of Uganda. These interventions will be structured under the PPP framework with the MEMD taking a lead as sector coordinator to ensure coherence.
She added that AfDB continues to be a strategic partner for the energy sector to accelerate access to reliable and affordable electricity. This is in line with Uganda’s Vision 2040 which acknowledges energy as a key ingredient in harnessing the potential for inclusive economic growth.
The AfDB Country Manager Uganda, Mr Augustine Ngafuan, affirmed the alignment between Uganda’s development agenda interests and the bank’s strategic priorities.
“This falls under the ‘New Deal on Energy for Africa’ strategy that prioritises sectoral support for energy security and universal access, enhanced governance at the national level, innovation to increase financial flows in the energy sector, and the promotion of social and environmental responsibility,” he said.
Mr Ngafuan also took note of the changes currently underway in Uganda’s energy sector and expressed AfDB’s willingness to render support in this regard. He further emphasised the need for cross-agency collaboration between the various actors in Uganda’s energy value chain whilst simultaneously tapping into the competencies and resources from the private sector.
The AfDB mission engaged with a variety of stakeholders including the Ministry of Finance, Planning and Economic Development (MFPED), Electricity Regulatory Authority (ERA), Uganda Electricity Generation Company Limited (UEGCL), Uganda Electricity Transmission Company Ltd (UETCL), Uganda Development Bank (UDB), the Rural Electrification Agency (REA), National Planning Authority (NPA) and the Public-Private Partnership (PPP) Unit.
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