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Govt Nears Completion of Shs512 Billion Kampala Power Upgrade Project Security Business and finance Science and technology

Kamwokya Times by Kamwokya Times
May 11, 2026
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Govt Nears Completion of Shs512 Billion Kampala Power Upgrade Project Security Business and finance Science and technology
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The Ministry of Energy and Mineral Development says Uganda is edging closer to resolving long-standing electricity reliability challenges in the Greater Kampala Metropolitan Area through the ongoing Kampala Metropolitan Transmission System Improvement Project worth USD 137 million, approximately Shs512 billion. The project is aimed at strengthening power evacuation, reducing outages, and supporting industrial growth in Kampala, Wakiso, Mukono, and surrounding urban centres.

On Sunday, officials from the Ministry, the Uganda Electricity Transmission Company Limited (UETCL), Japanese financiers, and contractors inspected three key substations under the project, including Namungoona, Mutundwe, and the newly energised Maya Substation in Mpigi District. The project is financed by the Government of Japan through the Japan International Cooperation Agency (JICA) and is being implemented by UETCL in partnership with a consortium of Toyota Tsusho Corporation and China Machinery Engineering Corporation.

Speaking during the inspection, UETCL Head of Projects Implementation Engineer Daniel Kisira said the project was designed to address rising electricity demand and persistent transmission bottlenecks within the Greater Kampala Metropolitan Area. Kisira explained that the project involves the construction and upgrading of major substations, reinforcement of the existing 132-kilovolt transmission ring, and deployment of a mobile substation to improve operational flexibility and emergency response.

According to Kisira, Lot One of the project, comprising Bulooba, Mutundwe, and Bujagali substations, has reached 98.9 percent completion, while Lot Two, covering Mukono, Namungoona, and transmission reinforcement works, stands at 83.7 percent completion. He said the Maya Substation was successfully energised on April 19, 2026, describing it as a major milestone toward improving network stability and supply reliability within Kampala and neighbouring districts.

Kisira also linked the project to Uganda’s efforts to maximise electricity generated from the 600-megawatt Karuma Hydropower Plant.

Energy Minister Dr. Ruth Nankabirwa Ssentamu described the project as a strategic national investment aligned with Uganda’s industrialisation agenda and long-term economic transformation plans. Nankabirwa said the project is intended to support industrial growth, create jobs, attract investment, and improve the quality of life of Ugandans.She noted that the Greater Kampala Metropolitan Area remains Uganda’s principal economic hub, requiring the government to invest ahead of demand to avoid disruptions that could undermine economic productivity. The minister added that once completed, the project will reduce transmission constraints, improve voltage stability, minimise outages, and create additional capacity to support future industrial expansion.

Japanese stakeholders reaffirmed Tokyo’s support for Uganda’s infrastructure and energy development agenda during the inspection tour. Toyota Tsusho Corporation General Manager Hiroumi Ohara said Japan had deployed advanced transmission and substation technologies under the project to reduce power losses and improve system efficiency. Ohara said the project represents an important step toward strengthening Uganda’s power supply and supporting sustainable economic growth.

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China Machinery Engineering Corporation Site Manager Quin Yuchi acknowledged that the project had faced challenges, including heavy rains, logistical constraints, and global supply chain disruptions. However, she said the consortium remained committed to delivering the project safely and according to international quality standards.

Uganda has, in recent years, expanded electricity generation capacity through projects such as the Karuma and Isimba hydropower dams. However, energy analysts have warned that weak transmission infrastructure risks limiting the country’s ability to fully utilise generated electricity. Frequent outages, unstable voltage, and delayed industrial connections have continued to affect manufacturers, businesses, and households, particularly within Kampala and rapidly urbanising districts.

Under the Electricity Act and Uganda’s National Energy Policy, UETCL is mandated to develop and maintain high-voltage transmission infrastructure to ensure a reliable bulk power supply across the country. The Kampala Metropolitan Transmission System Improvement Project is expected to be completed in phases, with Lot One targeted for completion by June 2026 and Lot Two by February 2027-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com

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