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Uganda: Government to Set Up Infrastructure Fund for Electricity Projects

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Cabinet has approved the setup of an Energy Infrastructure Fund, which will draw money from the Treasury to aid establishment of electricity projects

This was revealed by Energy Minister Maria Goretti Kitutu, during the launch of the Electricity Generators and Distributors Association of Uganda in Kampala early this week.

“We want to put an infrastructure fund. This will help government plan better, and also the private sector, we can be able to plan better to deliver these projects in an ordinary manner,” she said.

The infrastructure fund, according to Mr Robert Kasande, the permanent secretary, Ministry of Energy, will replace the Energy Fund that was halted around 2015 by Ministry of Finance.

“We should be allocated money from the Consolidated Fund every year into that fund so that when we have some infrastructure to build, we get a hand from that fund. It used to be there as an Energy Fund, which was removed by the Ministry of Finance. We moved to Cabinet and they have approved it,” he said.

The fund will be used to set up government infrastructure in the electricity subsector including power generation, transmission and distribution projects as well as any required feasibility studies.

Mr Kasande also noted that modalities on how much would be deposited into the fund periodically would be determined in due course, noting that the fund is expected in the 2022-23 financial year.

Currently, most of government’s electricity projects are funded by external debt, especially from China.