The Ministry of Energy and Mineral Development is requesting an additional budget of sh128 billion to link 200,000 homes in the current fiscal year.
This is part of sh18b, which the Ministry presented to the House Budget Committee on Tuesday, December 5, 2023.
“This amount is external financing from the World Bank for the Electricity Access Scale Up Project (EASP) that was suppressed during appropriation, given that the project had not achieved effectiveness,” stated Sidronious Okaasai, Minister of State for Energy.
The Budget Committee is deliberating on a supplementary budget of sh3.5 trillion for the fiscal year 2022/2023, which was presented to the committee by State Minister for Finance Henry Musasizi.
The additional budget includes sh197 billion for road building, sh47 billion for the deployment of medical interns and their allowances, and sh37 billion for the renovation of Speke Resort Munyonyo in preparation for the Non-Aligned Movement and G77 Summits next year.
Okaasai promised lawmakers that once the funds are available, the Ministry would be able to connect most residences that have previously built electric poles for free.
“By connecting more people to electricity, the unit cost is likely to fall as more people pay.” “Give me the money, and you’ll see the connections by next month,” he promised.
Okasaai stated that the EASP has been functioning since July 2023, but that some of the operations require further money.
The Ministry’s additional proposal includes sh30 billion for startup expenditures for the Karuma Hydro Power Plant, such as plant insurance, licenses, service contracts, and specialized instruments.
“This funding is intended to support the project’s implementation, with the goal of commencing commercial operations in November 2023,” Okaasai stated in a press release.
He also demanded sh58 billion to cover deficits in presumed energy contractual commitments under the Lira-Agago transmission line for the Achwa-Agago project.
Members of Parliament approved the supplemental request while cautioning the Ministry to keep their pledge of connecting largely rural homes.
“One of the reasons some of us supported the dissolution of the Rural Electrification Agency was their method of operation, which linked power to segregation.” “I generate electricity in my constituency, but I lack power; I would like to see that when this money is given, we will have electricity in my constituency for the first time,” remarked Hon. Wilfred Niwagaba (Ind., Ndorwa County East).
Dicksons Kateshumbwa, MP for Sheema Municipality, raised worry over large sums of money spent on deemed energy and encouraged the Ministry to use the supplemental and begin using the energy.
“We are sick of deemed energy; we need assurances that when this balance is finally paid, this country will continue to pay large sums of money because we have paid large sums at the expense of connections.” “We don’t want to hear you coming next year with deemed energy requests,” Kateshumbwa stated.
He urged the ministry to reveal the road map for implementing the 200,000 connections, asking, “Now that the World Bank funding has been approved, and we are going to approve this supplementary, can we start seeing the road map?”
