| Project Detail |
The South Sudan–Uganda Power Interconnection Project (hereinafter referred to as “SUPIP” or the “Project”) is a cross-border initiative that will simultaneously address excess electricity generation in Uganda and energy deficits in South Sudan, thus ensuring affordable power supply in both countries. The project is aligned with the United Nations Sustainable Development Goals (in particular goals 7, 9 and 13) and contributes to the achievement of the African Union Agenda 2063 goal of “climate-resilient and environmentally sustainable economies and communities” and promoting “a high standard of living, quality of life and well-being for all citizens”. This project mainly contributes to climate mitigation results. Thus, 100% of the total approved amount is allocated to climate financing, of which 100% is dedicated to mitigation. Project Objectives The development objective is to “integrate South Sudan into the East African Power Pool network” and specifically aims to “address the deficit, ensure the reliability and affordability of electricity in South Sudan while creating a market for clean, surplus energy generated in Uganda”. The project will, in the short and medium term, help to alleviate the electricity shortages in South Sudan, particularly in Juba and Nimule. Building on Ugandas generation expansion plan, this project is timely to help meet demand and ensure the countrys long-term security of supply (i.e. by 2045), as it will open a path for regional imports once South Sudans hydropower potential along the Nile River has been exploited, and facilitate the implementation of other cross-border interconnection operations such as those existing between South Sudan and Ethiopia and South Sudan and Kenya. Beneficiaries In addition, the Ugandan electricity supply sector will benefit financially, as UETCL will be able to export any surplus, thus reducing the financial burden of the energy clauses in the so-called “take-or-pay” power purchase agreements. Furthermore, the strengthening of the national electricity transmission infrastructure (thanks to the increase in the production capacity of the existing Olwiyo substation to 400/132/33kV and the new Bibia substation with a capacity of 400/132/33kV) will improve the reliability of supply in northern Uganda, in addition to reinforcing the benefits of the Banks Rural Electrification Access Project (UREAP) send for completion in Uganda. The infrastructure improvement will also complement the second phase of the UREAP project (UREAP II), the feasibility studies for which are financed by the Korea-Africa Economic Cooperation Trust Fund administered by the Bank. The objective of the UREAP II Project is expected to focus on increasing access to electricity, currently estimated at 47%, the main obstacles being, among other things, insufficient downstream investment in the electricity supply sector, particularly in the transmission and distribution segments. |
