Uganda has launched the South Sudan-Uganda Power Interconnection Project (SUPIP) after securing $121 million in African Development Fund (AfDB) financing, marking a pivotal step toward regional energy integration. The funding, part of a broader $299 million initiative, will support the construction of high-voltage transmission infrastructure connecting Uganda’s grid to South Sudan, enabling cross-border electricity trade and bolstering northern Uganda’s transmission network. The project, announced by the Ministry of Energy and Mineral Development (MEMD) in collaboration with the AfDB, follows the fulfillment of financing conditions and the establishment of a Project Implementation Team.
The technical launch of Uganda’s component occurred after the AfDB approved the first disbursement, with the government contributing counterpart funds. The initiative, led by MEMD and the Uganda Electricity Transmission Company Limited (UETCL), aims to address South Sudan’s energy challenges, where reliance on costly diesel generators has hindered reliable power access. African Development Bank representative Baba Fataja emphasized that the interconnection would provide South Sudan with cheaper electricity while allowing Uganda to export surplus power, fostering regional trade. "With cooperation between the two countries, there is an opportunity for them to get a cheaper source of energy from Uganda, and at the same time Uganda can export excess energy that they produce," Fataja stated.
The project spans 299 kilometers of 400-kilovolt double-circuit transmission lines between Olwiyo, Uganda, and Juba/Gumbo, South Sudan, including 150 kilometers in Uganda. Key infrastructure includes a new 400/132/33 kV Bibia Substation, upgrades to the Olwiyo Substation, and extensions to the Karuma Substation. These developments are expected to enhance Uganda’s northern grid reliability and expand its capacity to supply regional markets. For South Sudan, the interconnection will reduce dependence on fossil fuels, improving electricity access for households, businesses, and public institutions.
Daniel Okelo, Head of Grid Development and Planning at MEMD, outlined the project’s timeline, stating implementation will occur from 2026 to 2029. The initiative aligns with the Eastern Africa Power Pool (EAPP), aiming to integrate South Sudan into regional electricity markets. The AfDB’s financing for Uganda is part of a larger arrangement involving governments and partners, with South Sudan’s component receiving co-financing from the European Union. Both nations will manage their respective infrastructure, while coordinating cross-border procurement and implementation.
Implementation priorities include mobilizing a Project Supervision and Management Consultant, finalizing environmental and social safeguards, and procuring Engineering, Procurement, and Construction (EPC) contractors. The technical launch also facilitated alignment among stakeholders on financial management, monitoring, and coordination frameworks. Officials clarified that the event does not mark the full ceremonial launch, which will follow after further procurement progress. The AfDB’s role includes funding studies that enabled the interconnection, highlighting its strategic importance for regional energy security.
The project underscores broader public-interest benefits, including reduced energy costs for South Sudan and expanded export opportunities for Uganda. By leveraging Uganda’s growing generation capacity, the interconnection could stimulate economic growth and regional cooperation. However, challenges such as environmental impacts and community displacement require careful mitigation through the Resettlement Action Plan. As the initiative progresses, it represents a critical step toward a more interconnected and resilient East African energy network, with implications for sustainable development and cross-border collaboration.