The government of Uganda and that of Japan recently signed a loan agreement to the tune of USD 55 million (equivalent to JPY 5.406 billion) for the Interconnection Power Project of the Nile Equatorial Lakes Subsidiary Action Program (NELSAP), one of the two Nile Basin Initiative investment programs.

Uganda’s Minister of Finance, Planning and Economic Development Hon. Syda Bbumba signed on behalf of Uganda while Mr. Seki, a representative of the Japanese International Cooperation Agency (JICA) signed on behalf of Japan.  The signing ceremony took place on 26 March 2010 in Kampala and was witnessed by H.E. Mr. Keiichi Kato, Japan’s Ambassador of to Uganda.

This funding bridges the financing gap of the Interconnection Power Project which had earlier received USD 186.70 million from the lead financier, the African Development Bank (AfDB).

The money will be used to construct a 220KV transmission line covering 66km of a 172km line which runs from Mbarara substation to Mirama substation in Uganda and from Mirama substation to the new Birembo substation in Rwanda. This is in addition to 128km of a 256km line which runs from Lessos substation in Kenya to Bujagali substation passing through Tororo substation in Uganda.

.This scope is part of the NELSAP interconnection project of the electricity network of the Nile Equatorial (NEL) countries composed of Burundi, Kenya, D.R. Congo, Rwanda and Uganda. The interconnection project seeks to improve the living conditions of the people as well as the quality of the socio-economic development environment of the East and Central African region, based on the availability of affordable electric energy and access by the communities to electricity through increased cross-border electric power trade.
During the same occasion, the two governments also signed a USD 34 million (equivalent to approximately JPY 3.395 billion) ) towards co-financing part of the stretch of the road from Gulu- Atiak to Nimule (border with Sudan). The lead financier, the Worldbank contributed USD 68 million.

The Gulu-Atiak-Nimule Road forms a crucial regional link between Kampala and Juba, the Capital city of South Sudan, and is crucial for trade and development between the two countries.
Both the power project and road project are regional in nature. The power project will connect Uganda eastwards with Kenya and westwards with Rwanda, while the road project will interconnect Kenya, Uganda and Southern Sudan to Mombasa port through the Tororo-Mbale-Soroti-Lira-Karuma-Gulu Road Corridor.
This momentous occasion marks one more step forward in cooperation amongst the NELSAP Countries and their development partners. 

This signing ceremony was attended by Uganda’s Minister of State for Works Hon. Eng. John Byabagambi; representatives from the Ministry of Finance, Planning and Economic Development; Ministry of Energy; Uganda Electricity Transmission Company Ltd, Uganda Roads Authority; Development Partners from AfDB and the Worldbank; the media and the Interconnection Project Manager, Mrs. Grania Rubomboras.