Uganda ink deal to supply power to South Sudan

Uganda ink deal to supply power to South Sudan

Uganda is in talks with Chinese firm Sinohydro SINOH.UL Corporation Limited for a deal that saw the development of a $180 million power transmission line to allow the Kampala administration to export electricity to South Sudan.

According to the Daily Monitor, a delegation led by the Vice President of Sinohydro Corporation, Yang Yi Xin, met the President of Uganda, Yoweri Museveni, on Monday over the deal.

After the meeting, President Museveni’s office issued a statement, noting: “The project will involve the construction of a 138-km (85.75 miles) high-voltage transmission line to take power to South Sudan, the expansion of two substations and construction of one new one”

Yang Yi Xin, Sinohydro was quoted telling President Museveni: “We are very much willing to help develop this project with the required finance if needed”.

Museveni reportedly expressed support for Sinohydro to develop the project.

According to the media report, the two countries signed a power sales agreement in June last year to allow Uganda to sell electricity to South Sudan.

“The Chinese firm is completing a $1.5 billion, 600-megawatt hydropower project on River Nile in northern Uganda that is meant to be the source for the electricity exports to South Sudan,” said the statement from the president’s office.

In a statement dated June 27, 2023, the two countries reached a power sales agreement (PSA) to boost electricity supply and trade between the two neighbouring countries with the hope of increasing socio-economic development in the border towns.

The Power Sales Agreement (PSA) deal which was signed between Juba and Kampala also aimed to boost development in towns such as Oraba, Elegu, Kaya, and Nimule.