Uganda: Launches Uganda South Sudan Power Interconnection Project

• Uganda has commenced the South Sudan-Uganda Power Interconnection Project (SUPIP) with UA 91.7 million (US$121 million) secured from the African Development Fund.
• The project involves constructing approximately 299 kilometres of 400kV transmission line between Olwiyo, Uganda, and Juba/Gumbo, South Sudan, with Uganda's component covering about 150 kilometres.
• Key infrastructure includes a new Bibia Substation, upgrades to Olwiyo Substation, and an extension of Karuma Substation.
• The interconnection aims to integrate South Sudan into the Eastern Africa Power Pool (EAPP), providing reliable, cheaper electricity to South Sudan and an export market for Uganda.
• Implementation of the project is scheduled to run from 2026 to 2029, promising significant regional energy and economic benefits.

Lawyers specializing in energy, infrastructure, and project finance should note this major regional development, as it signifies significant upcoming legal work related to project financing, cross-border agreements, regulatory compliance, and land acquisition for the transmission infrastructure between 2026 and 2029.

Uganda has officially initiated the implementation phase of the Uganda South Sudan Power Interconnection Project (SUPIP), a significant regional undertaking designed to integrate the electricity grids of both nations. This crucial development follows the successful securing of UA 91.7 million, equivalent to approximately US$121 million, from the African Development Fund (ADF) to finance Uganda's portion of the expansive infrastructure. This substantial funding, complemented by counterpart contributions from the Ugandan Government, is earmarked for the construction of high-voltage transmission infrastructure that will establish a robust link between Uganda's national grid and South Sudan.

The technical launch of Uganda's component of the SUPIP Uganda South Sudan project was a collaborative effort, spearheaded by the Ministry of Energy and Mineral Development (MEMD) in conjunction with the Ministry of Finance, Planning and Economic Development, the Uganda Electricity Transmission Company Limited (UETCL), and the African Development Bank Group (AfDB). This milestone was achieved after all prerequisite conditions for the ADF financing to become effective were met, paving the way for the initial disbursement to Uganda and the formal establishment of the Project Implementation Team. The project is poised to facilitate cross-border electricity trade, bolster Uganda's northern transmission network, and offer South Sudan access to more reliable and potentially more affordable electricity sources.

The overarching Uganda South Sudan Power Interconnection Project entails the construction of approximately 299 kilometres of a 400-kilovolt double-circuit transmission line. This vital artery will stretch from Olwiyo in Uganda to Juba/Gumbo in South Sudan, incorporating all necessary associated substations and supporting infrastructure. Uganda's specific contribution to this extensive network will cover about 150 kilometres of the 400kV transmission line.

Within Uganda's component, the project includes the construction of approximately 118 kilometres of line extending from the Olwiyo Substation to Bibia, followed by an additional 32 kilometres connecting Bibia to the South Sudan border. Further critical infrastructure developments under the UETCL cross-border power project include the establishment of a new 400/132/33kV Bibia Substation, the comprehensive upgrade of the existing Olwiyo Substation to 400/132/33kV, and an extension of the Karuma Substation. This extension is specifically designed to enhance the evacuation of electricity from Karuma in the direction of Olwiyo, optimizing power flow within the strengthened network.

A primary objective of the SUPIP is to seamlessly integrate South Sudan into the Eastern Africa Power Pool (EAPP), thereby fostering wider regional electricity trade and enabling participating nations to share available generation capacity more effectively. This strategic interconnection is expected to yield substantial benefits for both Uganda and South Sudan. For South Sudan, the project offers a critical solution to its persistent challenges in securing reliable electricity, which has historically been characterized by heavy reliance on expensive diesel-powered generation.

According to Baba Fataja of the African Development Bank, who noted the bank's role in financing the foundational studies, the interconnection will provide South Sudan with an invaluable opportunity to access a cheaper source of energy from Uganda. This will significantly reduce its dependence on costly fossil-fuel-based electricity generation and improve access for households, businesses, industries, and public institutions. Conversely, for Uganda, the project strengthens its northern transmission network and creates an additional market for its surplus generation capacity, facilitating Uganda electricity export South Sudan and potentially contributing to wider regional electricity trading as more countries become interconnected.

The implementation of this transformative Uganda South Sudan Power Interconnection Project is projected to span from 2026 to 2029, as confirmed by Daniel Okelo, Head of Grid Development and Planning at the Ministry of Energy and Mineral Development. This timeline underscores a multi-year commitment to developing the infrastructure necessary for robust cross-border electricity trade.

The successful completion of this project will not only strengthen Uganda's capacity to move electricity to regional markets but also represents a crucial step towards enhancing energy security and economic development across Eastern Africa. Lawyers specializing in energy, infrastructure, and project finance should note this major regional development, as it signifies significant upcoming legal work related to project financing, cross-border agreements, regulatory compliance, and land acquisition for the transmission infrastructure between 2026 and 2029.

Lawyers specializing in energy, infrastructure, and project finance should note this major regional development, as it signifies significant upcoming legal work related to project financing, cross-border agreements, regulatory compliance, and land acquisition for the transmission infrastructure between 2026 and 2029. Compliance officers in energy companies operating in the region should monitor evolving regulatory frameworks for cross-border electricity trade.

Source: Original reporting via {source}