Uganda officially broke ground on a 347-kilometer, 400-kilovolt transmission line connecting Karuma to Tororo on October 22, 2026. The €342.6 million project, intended to support industrial growth and regional power trade, will traverse 15 districts over a 36-month construction period, backed by Swedish financing and Standard Chartered.
Strategic Infrastructure at the Ntinda Substation Site
Energy and Mineral Development Minister Dr. Monica Musenero launched the project during a ceremony at the Ntinda substation in Kampala. The transmission line is designed to evacuate power from the 600-megawatt Karuma Hydropower Plant, addressing a critical need to match the nation’s generation capacity with the infrastructure required to deliver electricity to industrial and residential consumers.
Reliable electricity infrastructure is critical to supporting industries, creating jobs and accelerating Uganda’s socioeconomic transformation.
Dr. Monica Musenero, Minister of Energy and Mineral Development
The project is expected to enhance power stability in eastern Uganda and the Greater Kampala Metropolitan Area. According to the Daily Monitor, the transmission corridor spans 347 kilometers across 15 districts, with work slated for completion in 36 months. Kalpataru Power Transmission Sweden AB has been contracted for the construction.
Swedish Agencies Back Loan with Varying Cost Reports
The project’s financial structure involves a loan arranged by Standard Chartered, with insurance and backing provided by Sweden’s Export Credit Agency (EKN) and the Swedish Export Credit Corporation (SEK). While the core contract is valued at €342.6 million, reports indicate that cost figures vary across sources, with some citing Shs 1.27 trillion and others Shs 1.48 trillion.
| Source | Reported Cost (EUR/USD) | Reported Cost (Shs) |
|---|---|---|
| Daily Monitor | €342.6 million | Shs 1.48 trillion |
| Riotimesonline | €342.5 million / US$384 million | Shs 1.27 trillion / Shs 1.48 trillion |
| Nilepost | – | Shs 1.27 trillion |
Transmission Line Supports Regional Energy Trade and Development
UETCL Board Chairperson Kwame Ejalu emphasized that the transmission line is essential for the national grid’s reliability. Beyond domestic supply, the project aims to facilitate regional electricity trade, positioning Uganda to export surplus energy to neighboring markets.
Ambassador Anna Maria noted that the investment aligns with Uganda’s long-term development plans. However, implementation challenges remain. A notice identified 8,751 households affected by the project. Minister Musenero and Chairperson Ejalu stressed that fair compensation and community engagement are necessary as construction begins.
Status of Implementation and Ongoing Uncertainties
Though construction has begun, several project details are unconfirmed. Although the project is intended to improve access, the specific start date for physical site works has not been announced. There is no public breakdown of the total EUR 342.5 million budget.