More than 20 Ugandan companies will benefit from part of the loan acquired from the EXIM Bank of China to bolster Uganda’s Rural Electrification program, according to State Minister for Energy Simon D’Ujanga following intense criticism from Members of Parliament over local content.
The commitment came after parliament halted consideration of the USD 212 million (Shs 784 billion) loan, over controversies on its likely benefits to Ugandans.
The loan is meant for the implementation of a project codenamed ‘bridging the demand-supply balance gap through the accelerated rural electrification programme. The project is aimed at extending electricity to 287 unconnected Sub-Counties across the country.
Minister D’Ujanga told Parliament that all poles for the rural electrification in the 287 sub-counties will be procured in Uganda and will be supplied by local companies at a cost of USD 36 million (134 billion Shillings).
D’Ujanga also told the House that all the construction works will be done by Uganda’s local engineering companies at a cost of USD 30.9 million (Shs115 billion).
He says most importantly 26,200 km of wires will be obtained locally, as long as all the above meet the quality specified.
MPs were first told by the National Economy Committee Chairperson Hon Syda Bbumba that 30 per cent of the loan meant to support rural electrification would make use of local content.
The position would later change after MP Nandala Mafabi (FDC, Budadiri West) said the project needs auditing to clear claims of runaway benefits to the Chinese at the expense of Ugandans.
Speaker Rebecca Kadaga postponed decision making on the matter pending clearing of the project’s nitty-gritties.
“We have substantially supported the economy of China for many years…I want us to refer this matter to tomorrow. We must know where the transformers [to be used for the project] will be coming from,” ruled Kadaga.
Kadaga also directed government to produce the list of over 280 beneficiary sub counties as an annexure to the motion for MPs’ scrutiny.
