(Ecofin Agency) - Ugandan national power distributor-Umeme- will pump $1.2 billion to rehabilitate and upgrade the national grid over the next 7 years. CEO Selestino Babungi (photo) told Reuters, revealing that an advisor has been appointed to assess options for fundraising.

Through this investment, the country will boost its power capacity along with the implementation of additional facilities as Karuma and Isimba (780 MW) will be commissioned by 2020. “We need to invest in new infrastructure to uptake the new generation: extending lines, building new substations, connecting more customers,” Mr. Babungi said.

Let’s note that the low capacity of Ugandan grid is a key factor of power weakness in the country. In fact, only 23% of inhabitants have access to electricity despite the fact that the country has an energy surplus of about 750 MW. Unfortunately however, this surplus which is not exported is inaccessible to population due to high cost.

Gwladys Johnson Akinocho