By Kitab Unango/SSMJ Kampala, Wednesday (October 30, 2024) - The ambitious Uganda-South Sudan power transmission line project, part of the East African Power Pool, has been delayed again due to ongoing financing issues, pushing its expected completion to 2028. Originally launched in 2015 with the goal of creating a unified regional grid, the 400kV transmission line from Olwiyo, Uganda, to Juba, South Sudan, is now six years behind schedule. These setbacks affect Uganda’s energy sector, whi
By Kitab Unango/SSMJ
Kampala, Wednesday (October 30, 2024) - The ambitious Uganda-South Sudan power transmission line project, part of the East African Power Pool, has been delayed again due to ongoing financing issues, pushing its expected completion to 2028.
Originally launched in 2015 with the goal of creating a unified regional grid, the 400kV transmission line from Olwiyo, Uganda, to Juba, South Sudan, is now six years behind schedule.
These setbacks affect Uganda’s energy sector, which faces a surplus in power generation, and South Sudan, which struggles with high electricity costs and unreliable service.
After significant investments in the Karuma and Isimba hydropower dams, which cost $291 million, Uganda's power generation capacity reached 2,000 MW in July 2024.
However, without a complete transmission network to distribute this power, Uganda is dealing with surplus energy that cannot reach areas in need, such as South Sudan.
“We are packaging the financing of the project,” Uganda’s Energy Permanent Secretary Irene Batebe told The East African, noting that while Uganda is committed, the necessary funds have not yet been secured.
South Sudan, with its limited 103 MW installed power generation capacity, faces a severe shortage.
According to the World Bank, only 76.5 MW of this capacity is operational, and only 34.5 MW is available for public use. This limited supply and heavy reliance on costly oil fuel contribute to high electricity tariffs (around $0.40 per kWh) and frequent outages.
The delay in Uganda’s transmission line means that South Sudan will continue to struggle with high electricity costs and limited access to affordable power.
For South Sudan, the delay represents more than a missed economic opportunity, perpetuating ongoing issues with access and affordability.
The postponed transmission line could have provided more affordable electricity from Uganda, reducing the burden on South Sudanese households and supporting economic growth.
Access to cheaper energy could lower tariffs, ease citizens' financial strain, and encourage business expansion, but with the timeline now pushed to 2028, these benefits remain out of reach for several more years.
The estimated $302 million project involves constructing 138 kilometers of line in South Sudan and 170 kilometers in Uganda, along with expanding substations in Juba, Olwiyo, and Bibia to 400 kV. But securing the funding remains a challenge.
The African Development Bank (AfDB) and the European Union (EU) have committed to financially supporting the South Sudan portion, expected to require around $120 million.
Uganda Electricity Transmission Company Limited (UETCL) Public and Corporate Communications Manager Muhammad Lubogo confirmed that the financing process involves multiple approvals from government and donor agencies.
“The construction duration is 24 months, with final commissioning expected within the first quarter of 2028,” Lubogo said.
The project’s roadmap includes securing concessional debt financing by September 2025, awarding the engineering, procurement, and construction (EPC) contract by March 2026, and starting construction shortly afterward.
However, with each step involving lengthy approvals, the timelines remain uncertain and prone to further delays.
The Uganda-South Sudan transmission line has potential to transform East Africa’s energy landscape.
Once operational, it could link Uganda’s northern grid with South Sudan and potentially extend to Ethiopia, creating an interconnected network that enables efficient power sharing across borders.
This could provide flexibility to import affordable power when needed and reduce pressure on each country to build new power plants in the near term.
In 2015, Uganda and South Sudan signed a power sales agreement to establish transmission and distribution infrastructure for cross-border trade.
Supported by a memorandum of understanding, this agreement reflects a shared commitment to building a stable, regional grid. However, with the timeline extended, the promise of a unified power grid remains unfulfilled.
Private sector interest has also emerged, as recently Sinohydro Corporation Ltd., a Chinese engineering firm, expressed interest in supporting the project during a meeting between the company’s vice president, Yang Yi Xin, and Ugandan President Yoweri Museveni.
“We are very much willing to help develop this project with the required finance,” Yang told Museveni, who assured Sinohydro of his support, underscoring the importance of the project for Uganda’s energy goals.
Despite these setbacks, the AfDB, EU, and Sinohydro's support suggests that the project could move forward once funding secures.
Both Uganda and South Sudan stand to gain long-term economic benefits from expanding and linking Uganda's power grid to Ethiopia, as lower electricity costs could support industrial growth and financial stability in the region.
Still, the path forward is complex, with financial, bureaucratic, and logistical hurdles to overcome.
Both governments recognize that stable electricity access is key to economic development and regional collaboration, but the timeline for realizing this vision remains uncertain.