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First independent transmission project reaches financial close in Uganda

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  • First independent transmission project in Uganda moves into construction phase.
  • Private capital deployed to upgrade critical grid infrastructure and reduce losses.
  • Commissioning targeted for 2028 to improve power quality for industry.

The Amari Power Transmission Project achieved financial close of US$50 million in March 2026, marking a significant step forward as construction begins on what is widely regarded as Africa’s first Independent Transmission Project. The milestone signals growing momentum behind private sector participation in grid infrastructure, an area historically dominated by state utilities.

The project is being developed by Gridworks, a subsidiary of British International Investment, in partnership with Uganda Electricity Transmission Company Limited. The collaboration aims to address the persistent execution gap in Africa’s power sector by mobilising private capital for transmission upgrades.

The scope of the project includes the modernisation of four high voltage substations located in Tororo, Nkenda, Mbarara North and Mbarara South. These upgrades are expected to ease transmission bottlenecks and reduce system losses, ultimately improving grid reliability and power quality for industrial users.

Siemens Energy has been appointed as the engineering procurement and construction contractor and will lead the delivery of the infrastructure works. Construction commenced following a groundbreaking ceremony in February 2026, with commissioning scheduled for 2028.

The project introduces a new financing model for the continent. The Independent Transmission Project structure represents a shift away from fully state funded infrastructure towards privately financed grid modernisation.

Kenya

The project follows Kenya’s landmark private transmission initiative. A US$311 million project, equivalent to KES 40.4 billion, was signed in December 2025 between Kenya Electricity Transmission Company and a consortium comprising Africa50 and Power Grid Corporation of India.

The Independent Power Transmission project is structured to address Kenya’s estimated US$5 billion grid financing gap without increasing public debt exposure. It represents a fully privately financed model, with no public funds committed.

The project will deliver approximately 620 km of high voltage transmission infrastructure. This includes the Lessos to Loosuk line, a 180 km 400 kV corridor designed to evacuate up to 300 MW of renewable energy from Lake Turkana wind resources and North Rift geothermal developments. A second component, the Kisumu to Musaga line, involves a 72 km 220 kV double circuit connection aimed at stabilising supply in western regions.

Financing is structured around availability based payments over a 30 year concession period. The project follows a Build Own Operate Transfer model, under which the assets will revert to the Kenya Electricity Transmission Company at the end of the concession.

Groundbreaking is expected in late 2026, with construction scheduled to take approximately 2.5 years.

Author: Bryan Groenendaal

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