Legislators protest power export loan for South Sudan

Parliament has approved a new loan worth US$ 121,961,000 from the African Development Fund to finance Uganda’s electricity export project to South Sudan, despite sharp divisions among Members.

While some legislators welcomed the project as a strategic regional investment that could generate foreign income, others warned that it would worsen Uganda’s debt burden and disadvantage local consumers still paying some of the highest electricity tariffs in East Africa.

Presenting the minority report, Hon. Charles Tebandeke (NUP, Bbale County) expressed concern over missing key documents, including the Memorandum of Understanding (MoU), Power Purchase Agreement (PPA), and contracts between Uganda and its neighbours.

“We acknowledge that the regional power trade is increasing rapidly after exports to Rwanda, Kenya, Tanzania, and DRC. However, Ugandans have not known the MoUs behind these exports, it is a secret to government,” he said during the plenary sitting on Thursday, 30 October 2025.

The sitting was chaired by the Deputy Speaker, Thomas Tayebwa

Tebandeke noted that while Uganda’s national grid coverage stands at 25.3 percent, only 15 percent of Ugandans have access to reliable electricity. “Where we export, importers enjoy a unit price cheaper compared to Ugandans. This has disadvantaged Ugandans, with places like Kalangala paying over Shs1,500 per unit. Why is electricity still costly in Uganda?” he asked.

The Rushenyi County MP, Hon. Naome Kabasharira, decried persistent power outages and tasked government to explain the paradox of surplus generation and limited distribution.

“We have a lot of power generation in this country. What is making it hard to distribute? Now our people will see this loan to supply power to South Sudan, yet load shedding is too much, can we fix it?” she said.

Erute County MP, Hon. Jonathan Odur, faulted the energy ministry for under performing projects.

“The Electricity Scale-Up Access Project is at 20 percent. There is a transmission line in Masaka whose execution has not commenced, as a result out of 10.8 million households, only two million are connected. Government should not allow citizens who are going to shoulder the burden of this loan to continue crying for power,” Odur said.

However, several MPs supported the loan, saying regional energy trade would strengthen Uganda’s economic position.

“This will be a good business for South Sudan because Ugandans do business there. Ugandans will also be beneficiaries, and in turn it will bring in income,” said Hon. Siraji Ezama (NRM, Aringa County).

Western Youth Representative, Hon. Edson Rugumayo argued that the export plan would help Uganda utilise its excess generation capacity.

“With this project, we project ourselves as powerful in the region. The majority committee report explains that in 2020 Uganda generated 2,000 megawatts but consumed only 900, leaving a surplus of 1,000. This loan is in the best interest of Ugandans, that we supply power to South Sudan and offset our debt burden,” he said.

Defending the project, the Minister of State for Energy and Mineral Development (Energy), Hon. Sidronius Okaasai, said regional power trade is vital for economic growth and energy security.

“If we fall short of electricity, we should be able to import it. We must trade in the EAC to avoid shortages. We have 2,056 megawatts and are using 900, meaning we have some electricity to sell,” he said.

A report by the Committee on National Economy presented by its chair, Hon. John Bosco Ikojo, revealed that the 299 kilometre power interconnector will start at the Gumbo substation site in the outskirts of Juba in South Sudan, crossing into Uganda territory at Nimule to the metering substation at Bibia, and proceed to terminate at Olwiyo substation which is supplied from the Karuma Hydroelectric Power Station.

He argued that the project will address power surplus and energy in Uganda and power deficits in South Sudan and projected that Uganda will trade 624 GWh of its surplus energy with South Sudan in the first year of operation with a big reduction in greenhouse gas emissions.

Parliament also passed two other loans; one worth €342.5 million from Standard Chartered Bank for construction of 400KV Karuma-Tororo double circuit transmission line and substation, and 132/33KV Ntinda Substation project.

House also approved a loan request for €230.4 million from Citi Bank to finance design and construction of 127 kilometres of Jinja-Mbulamuti-Bukungu Road and 10 kilometres of Jinja City roads.