Uganda in talks with China's Sinohydro over power line to South Sudan

President Yoweri Museveni (second right) poses for a photo by Chinese investors, led by Yang Yi Xin on Mat 13, 2024. (Photo: PPU)

By Reuters
Tuesday, May 14, 2024

The project will involve the construction of a 138-km (85.75 miles) high-voltage transmission line to take power to South Sudan, the expansion of two substations and construction of one new one.

Uganda is in talks with Chinese firm Sinohydro Corporation Limited for the development of a $180 million power transmission line to allow Uganda to export power to energy-starved South Sudan, the president's office said.

As part of the talks, a delegation led by Yang Yi Xin, Sinohydro Corporation's vice president, met Uganda's President Yoweri Museveni on Monday, a statement from Museveni's office said late on Monday.

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The project will involve the construction of a 138-km (85.75 miles) high-voltage transmission line to take power to South Sudan, the expansion of two substations and construction of one new one, the statement said.

Museveni expressed support for Sinohydro's offer to develop the project, particularly highlighting the potential of the Olwiyo-Nimule transmission project, the statement said.

"I am glad to hear about the Olwiyo-Nimule transmission project. That’s a very good idea if you have got the model of investing," he remarked while assuring the investors of the government's unwavering support.

Xin highlighted the significant strides made in the 400kV Olwiyo-Nimule transmission line and the associated substations project, emphasising its crucial role in Uganda's power master plan.

The Chinese investors, led by Yang Yi Xin during their visit to Uganda's President Yoweri Museveni on May 13, 2024. (Photo: PPU)

He explained that the project entails the construction of a 138 km transmission line, expansion of Olwiyo and Karuma substations, and the construction of a new substation, with an estimated cost of around $180 million, and a project period of about two years.

“We are very much willing to help develop this project with the required finance if needed," Xin was quoted as telling the president.

"A Power Sales Agreement (PSA) was signed between the South Sudan and Uganda governments in June 2023, and the Government of Uganda has completed the feasibility study. We have also developed a Feasibility Study and Environmental Impact Assessment (EIA) for this project."

In June last year, the two countries signed a power sales agreement to allow Uganda to sell electricity to South Sudan.

The Chinese firm is completing a $1.5 billion, 600-megawatt hydropower project on the River Nile in northern Uganda that is meant to be the source of electricity exports to South Sudan.