Gridworks and Government of Uganda sign key agreements for Amari Power Transmission –
Gridworks and the Government of Uganda have signed two landmark agreements that will enable Gridworks’ Amari Power Transmission (“Amari”) project to begin construction in the coming weeks.
Amari has entered into an Implementation Agreement with the Ugandan Ministry of Energy and Mineral Development, and a Transmission Services Agreement with national transmission utility, Uganda Electricity Transmission Company Limited (UETCL). The progress of the Amari Project is a major milestone for Uganda’s electricity sector, and for the adoption of private sector funding models for transmission infrastructure in Africa. Amari will be the first independent transmission project (ITP) on the continent to move into the construction phase.
Amari is a US$50 million ITP that will upgrade the transforming capacity of four high voltage electricity substations at key points on Uganda’s grid. It will improve the supply of electricity to industrial users in line with the Government of Uganda plans to improve the competitiveness of its industry, particularly the manufacturing sector. Amari will also allow the uptake of more renewable energy onto the grid and provide capacity to support future regional interconnection with Uganda’s neighbours.
Once completed, the project will support Uganda’s growing electricity demand, enable the evacuation of current and future generation capacity, and contribute to lower system losses and improved power quality across the network. The project is also expected to generate employment opportunities during construction. As a pilot for private sector transmission in Uganda, the project has supported the creation by the Government of a regulatory framework equipped to attract finance for future grid investment.
Gridworks’ Chief Executive Officer, Chris Flavin welcomed the strong partnership with the Government of Uganda:
“This is a decisive step that will allow the Amari Transmission Project to move into construction. We are particularly grateful for the leadership, foresight, and constructive engagement shown by the Government of Uganda in bringing this project to this stage.
He added: “By prioritising strategic transmission infrastructure, the Government is laying the foundations for reliable power supply, industrial growth, and long-term economic development. We now look forward to starting construction in the coming weeks and to delivering this important project.”
There is a growing trend of African governments beginning to work with the private sector to develop and fund critical electricity grid infrastructure. Several countries have initiated private transmission projects or regulatory reforms designed to allow private finance to flow into the sector.
Hon. Ruth Nankabirwa, Ugandan Minister of Energy and Mineral Development, underscored the strategic importance of the project and the government’s commitment to expanding and strengthening the national grid:
“The Amari Power Transmission project reflects the Government’s forward-looking approach to building the infrastructure required to support industrialisation, regional integration, and to boost economic growth. We welcome Gridworks as a long-term partner to the Government of Uganda and look forward to the timely construction and delivery of this vital transmission investment.”
Amari will upgrade four high voltage electricity substations at:
Tororo 220kV station, in eastern Uganda, close to the Kenyan border.
Nkenda 132kV station, in the West, at the intended high voltage interconnection point to DRC.
Mbarara North 132kV station and
Mbarara South 220kV station in western Uganda.
Gridworks has a portfolio of further ITP projects in development, including Chimuara-Nacala (Phase II & III), a $450m, 460km high voltage transmission line connecting central & northern regions of Mozambique; and Mbale-Bulambuli, a project building 80km of high-voltage lines and two new substations in eastern Uganda.
“As UETCL, we view this partnership as strategic and transformative and we look forward to the effective implementation and tangible improvements to the national grid.” Said Eng. Richard Matsiko, CEO – UETCL in his remarks.
Earlier this week, Gridworks announced an agreement with the Ethiopian government to develop two large scale transmission projects, Degehabur–Kebridehar and Hurso–Ayisha, covering over 400Km and with a combined value of around US$400 million.
The Gridworks portfolio also includes Moyi Power, a greenfield, solar-powered utility that will provide electricity to a million people in three cities in DRC; and distributed utility companies, Sustainable Power Solutions and Anzana Electric Group.
