WB lends Uganda US$120 million for power industry

it, a senior bank official said yesterday.
East Africa’s third largest economy often suffers power shortages and available electricity is frequently rationed, forcing businesses to resort to expensive diesel-powered generators.
Steven Shalita, World Bank Uganda’s Senior Communications Specialist, told Reuters the loan would fund a five-year project to benefit existing grid customers afflicted by the power cuts.
The project would involve the construction of a 137km transmission line and substations, providing technical assistance and relocation of people moved to make way for the power line.
About 6 500 new customers in southwestern Uganda will be connected, Shalita said.
“Among the key beneficiaries of the new project will be over 50 000 people living in the peri-urban areas along the transmission line,” he said.
Uganda will be generating an estimated 747 megawatts by the end of 2011 from last year’s 576MW, according to the sector regulator, Electricity Regulatory Authority (ERA).
The minister for energy told parliament recently more water would now be released through the country’s main hydropower dam, the Owen Falls, to generate an additional 40MW.
The extra hydropower is expected to plug the deficit created after the government decommissioned one thermal power plant at Jinja in eastern Uganda.
Shalita said the bank had so far invested US$319 million in other ongoing power projects. – Reuters.