The government is seeking to borrow Shs 422.7 billion (approximately $121.9 million) from the African Development Fund (ADF), the concessional arm of the African Development Bank (AfDB), to finance the South Sudan Power Interconnection Project, Daily Star has learned.
According to the Order Paper for today’s parliamentary sitting, Henry Musasizi, Minister of State for Finance, Planning and Economic Development, will seek Parliament’s authorization to secure the loan.
The amount is part of a broader $358 million credit package to be sourced from the African Development Fund, the Arab Bank for Economic Development in Africa (BADEA), and Standard Chartered Bank.
The loan request was first presented in September during a plenary session chaired by Deputy Speaker Thomas Tayebwa and was referred to the relevant House committee for review. The committee, comprising both ruling party and opposition MPs, is expected to present its report before the full House debates and votes on the proposal.
In addition to the South Sudan power interconnection, the borrowed funds will also support other infrastructure projects — including the construction of a road linking Uganda to the Democratic Republic of Congo (DRC) and the expansion of clean water access across the country.
Uganda, which now generates surplus electricity following the commissioning of the $1.7 billion Chinese-funded Karuma Hydropower Dam last year, has been preparing to export excess power to South Sudan.
The project, to be implemented in partnership with the Chinese firm Sinohydro, will involve the construction of a 138-kilometre high-voltage transmission line, the expansion of two substations, and the construction of a new one.
