The government on Thursday launched a $45.14m Bujagali interconnection project. The project is expected to increase access to less expensive and more reliable electricity supply to the national grid.

The Bujagali power project is an associated power transmission line system which evacuates electricity from the Bujagali hydropower station to the national grid. The first 50 MW phase of the Bujagali Hydro Electricity Dam Project at Jinja was first commissioned in February 2012.

The project is expected to reduce load shedding and boost Uganda’s economic growth.

Uganda currently is experiencing poor economic growth due to erratic power load shedding.

Several businesses are making losses and others closed due to insufficient power supply.

The construction of the US$600mn 250 MW project is owned by Bujagli Energy Ltd (BEL), in partnership with the US-based Sithe Global Power LLC and Industrial Promotion Services Kenya Ltd. The project was financed by the World Bank Group, European Investment Bank, African Development Bank, Netherlands Development Finance Company, German’s KFW and Absa Capital.