- Agreements clear the way for construction of Africa’s first independent transmission project.
- US$50 million investment to strengthen Uganda’s grid and support industrial growth. Milestone for private sector participation in power transmission infrastructure
Gridworks and the Government of Uganda have signed two major agreements that will allow the Amari Power Transmission project to move into construction within the coming weeks, marking a significant step forward for Uganda’s electricity sector.
The agreements include an Implementation Agreement with the Ministry of Energy and Mineral Development and a Transmission Services Agreement with the Uganda Electricity Transmission Company Limited. Together, they establish the framework for delivering the Amari project, which is expected to play a critical role in improving grid capacity, reliability and performance.
Amari is a US$50 million independent transmission project that will upgrade the transformer capacity at four strategically located high voltage substations across Uganda. The project is designed to improve electricity supply to industrial users, in line with government plans to enhance national competitiveness, particularly within the manufacturing sector.
The project will also enable greater integration of renewable energy into the national grid and create additional capacity to support future regional interconnections with neighbouring countries. Once operational, Amari is expected to support rising electricity demand, facilitate the evacuation of existing and future generation capacity, reduce system losses and improve overall power quality.
During construction, the project is anticipated to generate employment opportunities, while also serving as a pilot for private sector investment in Uganda’s transmission infrastructure. The initiative has supported the development of a regulatory framework aimed at attracting long term private finance for future grid expansion.
The Amari project will upgrade the following substations:
- Tororo 220 kV substation in eastern Uganda near the Kenyan border
- Nkenda 132 kV substation in western Uganda at the planned interconnection point with the Democratic Republic of Congo
- Mbarara North 132 kV substation
- Mbarara South 220 kV substation
Gridworks is a subsidiary of British International Investment, the United Kingdom government’s development finance institution. The company is actively developing a wider portfolio of independent transmission projects across Africa, reflecting a growing trend among African governments to partner with the private sector to finance and deliver critical grid infrastructure.
In Mozambique, Gridworks is advancing the Chimuara Nacala Phase Two and Three project, a 460 kilometre high voltage transmission line valued at approximately US$450 million. In eastern Uganda, the Mbale Bulambuli project will deliver 80 kilometres of high voltage lines and two new substations.
Earlier this week, Gridworks also announced agreements with the Government of Ethiopia to develop the Degehabur Kebridehar and Hurso Ayisha transmission projects, covering more than 400 kilometres with a combined value of around US$400 million. The broader Gridworks portfolio includes Moyi Power, a solar powered utility supplying electricity to one million people in three cities in the Democratic Republic of Congo, as well as distributed utility businesses Sustainable Power Solutions and Anzana Electric Group.
Author: Bryan Groenendaal
