AfDB, EU to finance $300mn Uganda-South Sudan power interconnection project

South Sudan is set to revolutionize its power connectivity through a groundbreaking joint project funded by the African Development Bank (AfDB) and the European Union (EU). The $300 million power interconnection project aims to bring electricity to thousands of households, effectively addressing the energy challenges that have plagued the country. South Sudan currently has one of the lowest power connection rates in the world, sitting at a mere 8.4%, rendering the nation uncompetitive due to exorbitant power prices. The partnership between the AfDB, EU, and South Sudan marks a significant step towards uplifting the country's infrastructure and economic prospects. Akol Dok, Managing Partner at Orus, provided insights into this transformative initiative during an interview with CNBC Africa. Dok highlighted the project's eco-friendly nature, emphasizing the shift towards sustainable energy solutions. Presently, South Sudan relies on generator-powered electricity in its capital, Juba, utilizing crude oil—a practice that is both environmentally harmful and economically inefficient. The new interconnection project promises clean and cost-effective electricity, offering hope to the vulnerable populations in South Sudan who have long grappled with limited access to power. Additionally, the initiative aligns with South Sudan's broader strategy to attract investors and spur industrial growth within the nation. In Dok's view, industrialization hinges on the availability of affordable and reliable electricity, elements that have been lacking in South Sudan due to the country's meager 7% electricity accessibility and soaring power prices. By bolstering power supply, the project paves the way for increased business activity and industrial development in various sectors like agribusiness. The introduction of reliable electricity can stimulate the establishment of agro-processing plants, prompting local farmers to boost production and contribute to the country's economic progress. The ambitious power interconnection endeavor involves the collaboration of Uganda and South Sudan, with a comprehensive plan encompassing a 308-kilometer power line dubbed the El Wio and the Juba power transition line. The project will kick off with 138 kilometers in Uganda and 170 kilometers in South Sudan, bringing electricity to border towns and eventually extending to the economic hub of Juba. The funding for feasibility studies has been secured from the AfDB, which will further finance the project, while China-Sinai Hydro has been appointed as the implementing firm. Dok anticipates that the project could be completed within two to three years, underscoring the swift progress enabled by the joint efforts of the involved parties. South Sudan's energy landscape holds vast untapped potential, particularly in hydropower resources. While the nation harbors ambitions to harness these clean energy sources through initiatives like the Faluwa Dam project, such endeavors entail significant time and funding commitments. In the interim, importing electricity presents a pragmatic solution to address immediate electricity shortages, especially in urban centers like Juba. Moreover, South Sudan has seen a surge in solar energy projects on a smaller scale, hinting at a promising avenue for expanding electricity access across the country. The forthcoming power interconnection project from Uganda opens windows of opportunity for bolstering energy access in South Sudan. Amid neighboring Sudan's ongoing conflicts, the project remains geographically separated from the turbulent areas, ensuring minimal disruptions. Notably, the electricity imported from Uganda could potentially be extended to northern South Sudan, benefiting towns like Rang that currently rely on electricity imports from Sudan. The broad implications of the power interconnection project are poised to benefit hundreds of thousands of households in South Sudan. By initiating power supply from border towns to the economic nerve center of Juba, the project promises to provide reliable and inexpensive electricity to a significant portion of the population. With Juba serving as both the political and economic capital, the influx of affordable power is expected to fuel business growth, empower entrepreneurs, and enhance the overall quality of life for residents. The AfDB and EU's substantial investment in South Sudan's power infrastructure signifies a pivotal moment in the country's pursuit of sustainable development and economic prosperity.