By Deng Ghai Deng
Juba, South Sudan – South Sudan and Uganda have finalized a landmark power purchase agreement aimed at delivering more affordable and sustainable electricity to the region. With Uganda’s Cabinet already approving a loan from the African Development Bank (AfDB), the final go-ahead now awaits a vote in Uganda’s Parliament, after which construction can begin in earnest.
Engineer Jacob Manyuon Deng, Regional Power Program Officer at the Nile Equatorial Lakes Subsidiary Action Program Coordination Unit (NELSAP-CU)—the investment arm of the Nile Basin Initiative (NBI)—confirmed that South Sudan has secured a US$118 million grant from the AfDB and the European Union. The funds will be used to build a 400kV high-voltage transmission line linking Juba to Uganda’s national grid at Nimule, near the shared border.
“This project is vital for South Sudan, where only 6 percent of the population currently has access to electricity,” said Eng. Deng.
The 149-kilometer South Sudanese section will connect to a 151-kilometer line on the Ugandan side, running from Olwiyo in Nwoya District to Elegu, at the border. Uganda has secured a US$140 million concessional loan from AfDB to finance its portion of the project.
This initiative forms part of a flagship transboundary green energy program spearheaded by NELSAP under the Nile Basin Initiative. NELSAP has played a central role in developing the project—from the feasibility studies completed in late 2024 to the current financing and implementation phase.
Engineer Deng highlighted the project’s potential to drive transformative change across the region.
“This initiative exemplifies the power of regional cooperation over shared water and energy resources,” he said. “It brings real, tangible benefits to people on both sides of the border.”
For South Sudan, the project represents a major milestone in its energy development. By connecting to Uganda’s recently completed 600 MW Karuma Hydropower Plant, South Sudan will be able to import electricity at just US$0.11 per kilowatt-hour (approximately UGX 400)—one of the lowest tariffs in the region. This price is significantly lower than current diesel-powered generation costs of about $0.42 per KWh.
“This is a game changer for us,” Eng. Deng stressed. “Cheaper, more reliable electricity will reduce operational costs, attract industries, improve urban lighting and security, and drive socio-economic development.”
Uganda, in turn, will benefit by expanding its power export market and utilizing surplus electricity generated by the Karuma Dam. The deal follows a successful precedent: Uganda’s 2023 Mbarara-Shango transmission line project with Rwanda, also facilitated by NELSAP, which now enables cross-border power trade.
In addition, the AfDB has committed US$2 million in grant funding to NELSAP for ongoing coordination and supervision of the project.
With financing secured and political backing in place, the South Sudan–Uganda electricity interconnection is set to reshape the region’s energy landscape—powering homes, energizing industries, and deepening regional integration.