Tuesday 12, June 2018 by Jessica Combes

ADFD approves AED40 million loan for rural electrification project in Uganda

 

The rural electrification project is anticipated to improve the living standards of the rural population and minimise migration to cities

Abu Dhabi Fund for Development (ADFD), the leading national entity for development aid, has approved an AED40 million concessionary loan for the development of a rural electrification project in Kalongo in Uganda.

Aimed at electrifying homes, schools, healthcare centres, government offices and commercial, industrial and agricultural establishments, the project seeks to help the government achieve its objective of meeting the rural electricity demand that currently stands at less than seven per cent to 26 per cent by 2022. Set to benefit 20,634 consumers over the next 10 years, the rural electrification project is anticipated to improve the living standards of the rural population and minimise migration to cities.

“The UAE, through the Abu Dhabi Fund for Development, pursues an active policy of supporting sectors that can accelerate economic development across emerging countries. Among these sectors, energy is of great significance, given its crucial role in poverty eradication and inclusive development. At ADFD, we are committed to supporting the government of Uganda in fulfilling its development objectives through ensuring timely and adequate funding for strategically important projects,” said HE Mohammed Saif Al Suwaidi, Director General of ADFD.

The 33kV rural electrification project involves civil and electrical works for the installation of a 139-kilometre transmission line, as well as 88 distribution stations and 415 volts’ distribution lines on a 167-kilometre stretch that will bring electricity to about 2,000 consumers. The project supports the development of small industries, workshops and agricultural units in rural Uganda, while curbing the over-exploitation of vegetation as a source of energy.

ADFD’s engagement in the development of Uganda dates back to 1977. Since then, the Fund has extended AED79 million in loans and government grants towards the development of a number of projects that have positively transformed the livelihood of a sizable rural population and the local economy.

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