World Bank earmarks $100m for rural electricity

By Ronald Kalyango                      

A World Bank mission is in the country to put final touches onto the third phase of Electricity for Rural Transformation (ERT III) project, the task team leader has said.

“We are perusing through the project proposal. We have visited some parts of the country and our prayer is to have the final decision taken by the end of this mission on October 20,” said Mits Motohashi.

Task team leader for ERT II, Somin Mukheji he explained that the third phase of the project is expected to cost $100m.

“An indicative project cost of $100m has been proposed and discussed between the World Bank and the government of Uganda. It will be the Bank's board of directors to take the final decision. But as a task team leader, I will play my role to present and defend the project for approval,” he noted.

Motohashi was optimistic that the third phase of the project is likely to be launched immediately at the end of the second phase. 

“We are likely to have a scenario of two projects running concurrently. The second phase will end in March 2016 but I am optimistic that by that time the third phase will be running already,” said Motohashi.

Motohashi explained that during the third phase, focus will be put on extending new electricity lines to rural areas, but they will also explore opportunities of accelerating more solar connections and other renewable energy sources.

“We cannot ignore construction of new lines to connect new rural areas, but at the same time electricity lines will not mean anything unless people are connected onto the national grid,” he explained.

Rural Electrification Agency (REA)'s executive director, Godfrey Turyahikayo explained that his agency had constructed several lines and connected more houses onto solar under the ERT II. 

“The ERT phase II project aimed at scaling up investments in rural electrification and information communication technologies,” explained Turyahikayo.

He said under ERT Phase II, rural electrification agency is implementing the solar PV Targeted Market Approach (PVTMA) with major focus on promoting consumer credit and provide consumer subsidies for PV to targeted markets.

“So far we have installed over14,000 solar systems since 2009, but we still want to do more. In fact we are supposed to install 20,000 by the time the project expires in 2016, we shall have achieved that and more under the new arrangements,” explained Turyahikayo.