ADFD grants US$10.89mn for rural electrification project in Uganda

ADFD ugandaThe project, once completed, seeks to meet growing electricity demand in rural Uganda. (Image source: Oran Viriyincy/Flickr)Abu Dhabi Fund for Development (ADFD) has approved a US$10.89mn concessionary loan to develop a 33kV rural electrification project at Kalongo in Uganda

Mohammed Saif Al Suwaidi, director general of ADFD and Ajedra Gabriel Gadison Aridru, minister of state for finance planning and economic development in Uganda, signed the loan agreement at the ADFD headquarters in Abu Dhabi.

Aimed at electrifying homes, schools, healthcare centres, government offices and commercial, industrial and agricultural establishments, the project seeks to help the government achieve its objective to meet electricity demand in rural Uganda, increasing electricity output from less than seven per cent to 26 per cent by 2022.

The project is expected to benefit about 20,634 consumers over the next 10 years, thus improving the living standards of the rural population and minimise migration to cities.

Speaking on the occasion, Al Suwaidi said, “The UAE, through ADFD, pursues an active policy of supporting sectors that can accelerate economic development across emerging countries. Among these sectors, energy is of significant importance given its crucial role in poverty eradication and inclusive development.”

The rural electrification project involves civil and electrical works for the installation of a 139km transmission line, as well as 88 distribution stations and 415V distribution lines on a 167km stretch that will bring electricity to about 2,000 consumers.

The project further aims to support the development of small industries, workshops and agricultural units in rural Uganda, while curbing the overexploitation of vegetation as a source of energy.

ADFD’s engagement in the development of Uganda dates back to 1977. Since then the Fund has extended US$21.51mn in loans and government grants towards the development of a number of projects to develop the local economy.

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