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Government has sealed a power transmission deal with UK firm, Gridworks and the commencement of execution expected in the next few weeks. The two agreements, an implementation agreement with the energy ministry and a transmission service agreement with Uganda Electricity Transmission Company Ltd (UETCL), signed on Tuesday, will see the Amari Power Transmission Project take off and be concluded in the next two and a half years.
UETCL says that the progress of the Amari Project, the first continental independent transmission initiative, is a major milestone for Uganda’s electricity sector and for the adoption of private sector funding models for transmission infrastructure in Africa.
“As UETCL, we view this partnership as strategic and transformative, and we look forward to the effective implementation and tangible improvements to the national grid,” said Eng. Richard Matsiko, the CEO of UETCL.
The $50m project is set to upgrade the transforming capacity of four high voltage electricity substations in Tororo, Kasese and Mbarara, and improve the supply of electricity to industries. The move aligns with the government’s plan to advance the competitiveness of the industrial sector, especially in manufacturing.
It’s been positioned to support Uganda’s growing electricity demand, enable the evacuation of current and future generation capacity, and contribute to lower system losses and improved power quality across the network. In the execution phase, the project is also expected to generate employment opportunities.
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Following the feasibility studies, four high-voltage electricity substations will undergo upgrades. The 220kV station in Tororo, Nkenda, 132kV station which sits at the interconnection point with DRC, Mbarara North, 132kV station, and Mbarara South, 220kV station.
The chief executive officer of Gridworks, Chris Flavin, welcomed the strong partnership with Uganda, indicating how crucial the deal is. “This is a decisive step that will allow the Amari Transmission Project to move into construction. We are particularly grateful for the leadership, foresight, and constructive engagement shown by the Government of Uganda in bringing this project to this stage,” said Flavin.
The energy minister, Hon. Ruth Nankabirwa, underscored the strategic importance of the project and the government’s commitment to expand and strengthen the national grid.
“The Amari Power Transmission project reflects the Government’s forward-looking approach to building the infrastructure required to support industrialisation, regional integration, and to boost economic growth. We welcome Gridworks as a long-term partner to the Government of Uganda and look forward to the timely construction and delivery of this vital transmission investment,” she said.
Gridworks’ portfolio includes extra underway independent transmission projects such as; Chimuara-Nacala (Phase II & III), valued at $450m, a 460km high voltage transmission line connecting central & northern regions of Mozambique, and the Mbale-Bulambuli project involving the 80km high-voltage lines and two new substations.
The deal is not only primed to improve the national grid, in anticipation of the growing regional electricity demand, but also set ground for further private sector investment in the transmission segment.