The Uganda-South Sudan power interconnection project has received a major funding boost from the African Development Bank (AfDB) and the European Union (EU), with a combined commitment of USD 182.1 million.

The AfDB has committed USD 155 million in loans and grants, while the EU will provide an additional grant of USD 27.1 million. The funding will support the construction of a 299-kilometer, 400-kV transmission line connecting the two countries.

The project, which had faced delays due to financial and logistical challenges, aims to strengthen regional energy cooperation and promote economic development in both countries. The total project cost has been revised to approximately USD 260 million, higher than Uganda’s initial projection of USD 164.7 million.

The cross-border infrastructure project involves the construction of a transmission line spanning 149 kilometers from Gumbo in Juba, South Sudan, to the Uganda border, and 150 kilometers from the border to the Olwiyo substation via the new Bibia substation in Uganda.

Additionally, the project includes the construction of a new 400/132/33 kV substation in Gumbo and the expansion of the Karuma substation, both in Uganda. The Olwiyo substation will also be upgraded from 132/33 kV to 400/132/33 kV.

The funding from AfDB and EU is expected to accelerate the project’s completion, which is now scheduled for 2028. The project will play a critical role in promoting regional energy cooperation, enhancing economic development, and improving the lives of citizens in both Uganda and South Sudan.