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Home»Regional»BREAKING:UGANDA SECURES $121MILLION TO POWER SOUTH SUDAN IN MASSIVE REGIONAL DEAL
Regional

BREAKING:UGANDA SECURES $121MILLION TO POWER SOUTH SUDAN IN MASSIVE REGIONAL DEAL

felix@elixnews.co.ugBy felix@elixnews.co.ugSeptember 27, 2026Updated:September 27, 2026No Comments3 Mins Read
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Uganda has officially kicked off the South Sudan-Uganda Power Interconnection Project (SUPIP) after locking in a massive UA 91.7 million (approx. US$121 million from the African Development Fund (ADF).
The multi-billion shilling funding, combined with counterpart backing from the Ugandan Government, will finance the construction of high-voltage transmission networks physically linking Uganda’s national electricity grid straight into South Sudan.
The mega regional project is set to ignite cross-border electricity trade, drastically reinforce Uganda’s power grid across northern districts, and open up a brand-new revenue stream by exporting excess domestic energy.
The Ministry of Energy and Mineral Development (MEMD), alongside the Ministry of Finance, Uganda Electricity Transmission Company Limited (UETCL), and the African Development Bank Group (AfDB), successfully held the technical launch for the Ugandan component of the project.
This critical milestone follows the fulfillment of all strict funding conditions required by the ADF for the first cash disbursement to Uganda, alongside the official setup of the Project Implementation Team.
Speaking on behalf of the African Development Bank, Baba Fataja revealed that South Sudan continues to struggle under the weight of astronomical electricity costs due to a heavy reliance on diesel generators.
“South Sudan is really struggling to have a reliable supply of electricity, which is very expensive because they depend on diesel,” Fataja noted. “With the cooperation of the two countries, there is an opportunity for them to get a cheaper source of energy from Uganda, and at the same time, Uganda can export excess energy that they produce.”
Fataja further added that this project lays the groundwork for wider, cross-border electricity trading as more East African nations interconnect in the future.
The infrastructure project integrates South Sudan into the Eastern Africa Power Pool (EAPP) through a heavy-duty grid network:
    • Total Distance: Approximately 299 kilometers of 400-kilovolt double-circuit transmission line stretching from Olwiyo in Uganda to Juba/Gumbo in South Sudan.
    • Uganda’s Share: Covers 150 kilometers, spanning 118km from Olwiyo Substation to Bibia, and an additional 32km from Bibia to the South Sudan border.
    • Substation Upgrades: Construction of a brand-new 400/132/33kV Bibia Substation, upgrading Olwiyo Substation, and extending the Karuma Substation to seamless evacuate power from the Karuma Hydroelectric Dam.

According to Daniel Okello, Head of Grid Development and Planning at the Energy Ministry, physical implementation is slated to run between 2026 and 2029.
With funding fully secured, the project shifts focus to key pre-construction activities:
    • Recruiting the Project Supervision and Management Consultant.
    • Finalizing the exact transmission route.
    • Completing the environmental and social safeguard requirements, including the Resettlement Action Plan (RAP) for affected locals.
    • Procurement of Engineering, Procurement, and Construction (EPC) contractors.

While both governments will coordinate the procurement and border infrastructure closely, each country remains fully responsible for funding and constructing its respective territorial component. Officials emphasized that this technical alignment meeting will be followed by a full, high-profile ceremonial launch at a later date as construction nears.
AfDB East Africa Bureau African Development Bank Group BANK OF UGANDA Eastern Africa Power Pool European Union in Uganda Government Citizen Interaction Centre MINISTRY OF DEFENCE Ministry of Energy and Mineral Development MINISTRY OF FINANCE MINISTRY OF FOREIGN AFFAIRS MINISTRY OF LOCAL GOVERNMENT PARLIAMENT OF UGANDA Planning and Economic Development President Yoweri Kaguta Museveni Uganda Electricity Transmission Company Limited UGANDA POLICE
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felix@elixnews.co.ug

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BEYOND THE BOOM: CAN UGANDA TURN $12B OIL RUSH INTO LASTING WEALTH?

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