Uganda Electricity Distribution Company Limited (UEDCL) has secured a significant loan from Absa bank to enhance its power distribution network. The agreement provides for a $50 million loan amount, equivalent to Shs 190 billion, marking a substantial investment in the country's energy infrastructure.

The signing of this deal coincides with the approval by the Ministry of Energy and Mineral Development and the Ministry of Finance, Planning and Economic Development, both of which are shareholders in UEDCL. This endorsement demonstrates UEDCL's creditworthiness and governance capabilities, paving the way for future funding opportunities.

Paul Mwesigwa, managing director of UEDCL, emphasized that this loan agreement will have a positive impact on Ugandans, showcasing the company's ability to secure capital from reputable financial institutions like Absa. This development underscores UEDCL's commitment to upgrading its distribution network and providing reliable, affordable energy services.

"We are proud to have secured this funding, which is a testament to our governance and creditworthiness," Mwesigwa noted. "This loan will be used to improve the efficiency of our power transmission systems, including substations and transformers, as well as to address areas with heavy load constraints.

Specifically, UEDCL plans to allocate funds for the construction of new substations in Kasangati, Gayaza, Nakasero hill, Kololo, William street, and Makerere, aiming to stabilize power supply within Kampala's urban centers. These projects are expected to be completed over the next two years, with a significant portion of the country benefiting from improved electricity services.

As Mwesigwa pointed out, "We believe this milestone is a significant step forward for our institution and the nation as a whole. We are confident that our governance framework and creditworthiness have been assessed by the bank, leading to this loan agreement being tagged to our balance sheet."