UGANDA · ENERGY
Key Facts
- —What is happening Uganda broke ground on Thursday, 22 October 2026, on a 400 kV line of about 347 km from Karuma to Tororo. It crosses 15 districts, and works are planned over 36 months.
- —Why it matters The line carries power from the 600 MW Karuma dam towards eastern Uganda and Greater Kampala. It is meant to support industry and regional electricity trade.
- —The numbers The main contract is financed with EUR 342.5 million (about US$384 million). Other cost figures are Shs1.27 trillion (about US$310 million) and Shs1.48 trillion (about US$361 million).
- —Who is who UETCL, the state owned Uganda Electricity Transmission Company, owns the project. Standard Chartered lends, Sweden’s EKN insures the loan and Kalpataru builds.
- —What to watch Watch for the start of works, the substation names, compensation for 8,751 affected households and whether the cost figures are reconciled.
- —What it means for you No US lender or contractor is named, so direct US exposure looks limited. A stronger Ugandan grid still matters for US firms operating there.
Uganda has started building a 347 km, 400 kV line to move Karuma dam power east. Financing, contractor and cost figures are public, but the cost numbers differ.
Uganda broke ground on Thursday, 22 October 2026, on the Karuma power line, a 400 kV transmission project of about 347 km. The line will run across 15 districts from the Karuma hydropower plant to Tororo in the east.
Energy Minister Dr Monica Musenero spoke at the ceremony, which both Nile Post and the Monitor covered. Euro financing of EUR 342.5 million (about US$384 million) backs the main contract, according to the lender.
What the Karuma Power Line Will Do
Nile Post says the project will strengthen the national grid and improve power supply to eastern Uganda and Greater Kampala. It is also meant to support industry and widen regional electricity trade.
UETCL, the Uganda Electricity Transmission Company, is the state firm that owns and runs the high voltage grid. Its board chairperson, Kwame Ejalu, said the line complements generation such as the 600 MW Karuma plant.
The Monitor reports that the ceremony took place at the Ntinda substation in Kampala. Works are planned to last 36 months, and the minister urged contractors to start promptly and deliver quality.
A January financing announcement by Standard Chartered quotes the finance minister saying the line will carry Karuma’s output to load centres. He named Tororo Industrial Park as one, and Sanyu FM reported the same.
UETCL’s 2025 notice, carried by state broadcaster UBC, lists 15 districts from Kiryandongo to Tororo. The corridor is 60 metres wide and touches 85 sub-counties and 640 villages.
That notice also counted 8,751 affected households, meaning families and businesses on or near the land the line needs. At the groundbreaking, Ejalu stressed fair compensation for people affected by the project.
Who Is Paying and Who Is Building
On Friday, 30 January 2026, Standard Chartered said it is lead arranger and lender for EUR 342.5 million (about US$384 million). The money funds the commercial contract for the line and its substations.
EKN is Sweden’s state export credit agency, which insures lenders that finance Swedish exports. The lender says the loan is also supported by the Swedish Export Credit Corporation, SEK, and Poland’s agency KUKE provides reinsurance.
Standard Chartered called the deal EKN’s first transaction in Uganda. The release mentions long tenors but gives no repayment period or interest rate.
The Monitor names the contractor as Kalpataru Power Transmission Sweden AB. UETCL’s 2025 notice named Kalpataru Power Transmission Limited, so the entity needs confirming.
Sweden’s ambassador to Uganda, Anna Maria, reaffirmed her country’s support at the ceremony. She said the project would strengthen transmission, support investment and open regional power trade.
EKN provisionally classified the project as Category A in March 2025, a label for projects with potentially significant environmental and social impacts. The agency cited land acquisition, resettlement, working conditions, health and safety, and biodiversity.
Why the Cost Figures Differ
Nile Post puts the cost at Shs1.27 trillion (about US$310 million). The Monitor gives EUR 342.6 million (about US$384 million), which it converts to Shs1.48 trillion (about US$361 million).
Sanyu FM quoted Finance Minister Matia Kasaija in January: up to Shs1.4 trillion (about US$341 million) would fund the line. The sources do not explain the gaps, which may reflect exchange rates or what each figure includes.
No source gives US$340 million as the project cost, and the US dollar values here are conversions. They use Shs4,100.68 per US$1 and US$1.1205 per euro, both rates of 22 October 2026.
The Bank of Uganda’s official rate page could not be opened, so every US dollar value is approximate. Euro amounts are rounded to the nearest US$1 million.
What It Means for US Readers
None of the sources names a US lender, contractor or equipment supplier, so direct US exposure looks limited. The financing is in euros and was arranged by Standard Chartered, a London listed bank, with Swedish and Polish state backing.
US companies operating in Uganda depend on a stable grid, and this line targets eastern Uganda’s industrial demand. UETCL’s 2025 notice describes a route ending at a proposed Uganda-Kenya border substation, which would point to future power trade.
Uganda is also courting US capital, as a separate report on talks with J.P. Morgan about energy shows. No link between those talks and this line has been announced.
What Is Not Known
No start date for physical works, no contractor price and no breakdown of the EUR 342.5 million (about US$384 million) have been published. The Shs1.27 trillion, Shs1.4 trillion and Shs1.48 trillion figures have not been reconciled.
The names of the new substations and the two upgraded ones are not confirmed. It is also unclear whether the Kenyan border substation is part of this contract, and the loan terms are undisclosed.
UETCL’s news page carried no statement on the ceremony on 22 October, and the Energy Ministry site did not open. The Monitor article was partly paywalled, so some detail may be missing.
The Ntinda venue, the EUR 342.6 million (about US$384 million) figure and the contractor name come from the Monitor alone. The Shs1.4 trillion figure comes from Sanyu FM alone.
What Comes Next
Construction is planned over 36 months, which would point to completion around late 2029 if works begin in the coming weeks. No official start or completion date has been published.
Compensation for households on the route is the next test for UETCL. Ejalu urged accountability, value for money and quality.
Frequently Asked Questions
What is the Karuma power line?
It is a 400 kV double circuit transmission line of about 347 km from the Karuma hydropower plant to Tororo. Construction is planned over 36 months.
How much does the Karuma power line cost?
Reports differ: Shs1.27 trillion (about US$310 million), Shs1.48 trillion (about US$361 million) or EUR 342.5 million (about US$384 million). The euro figure comes from the lender itself and covers the main contract.
Who is financing the line?
Standard Chartered is lead arranger and original lender. Sweden’s EKN and SEK support the loan, and the Polish agency KUKE provides reinsurance.
Who is building the line?
The Monitor names Kalpataru Power Transmission Sweden AB, and UETCL named Kalpataru Power Transmission Limited in 2025. UETCL owns the project.
When will the line be finished?
Works are planned to last 36 months from the start. No start date for works and no completion date have been published.
Sources: Nile Post; Daily Monitor; Standard Chartered; EKN; UBC; Sanyu FM; open.er-api.com; Frankfurter (all accessed 22 October 2026). No UETCL or Ministry of Energy statement was available online.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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