Uganda's Parliament has approved a new loan worth US$121,961,000 from the African Development Fund, designated to finance the country's electricity export project to South Sudan. This decision, made during a plenary sitting on Thursday, 30 October 2025, was met with sharp divisions among Members of Parliament, reflecting a complex debate over national economic strategy, debt burden, and domestic electricity access.

While some legislators championed the project as a strategic regional investment poised to generate foreign income for Uganda, others raised significant concerns. Charles Tebandeke (NUP, Bbale County), presenting the minority report, highlighted missing key documents such as the Memorandum of Understanding (MoU), Power Purchase Agreement (PPA), and contracts related to existing power exports. He noted that despite increasing regional power trade with countries like Rwanda, Kenya, Tanzania, and DRC, the details of these agreements remain undisclosed by the government.

Tebandeke further criticized the paradox where only 15 percent of Ugandans have access to reliable electricity, despite a national grid coverage of 25.3 percent. He pointed out that export customers often enjoy cheaper unit prices compared to local consumers, with some areas like Kalangala paying over Shs1,500 per unit. Naome Kabasharira, Rushenyi County MP, echoed these sentiments, decrying persistent power outages and questioning the government's struggle with distribution despite surplus generation. Jonathan Odur, Erute County MP, faulted the energy ministry for underperforming projects, citing the Electricity Scale-Up Access Project as only 20 percent complete, leaving millions of households unconnected while citizens are expected to shoulder the burden of new loans.

Conversely, several MPs voiced strong support for the loan, emphasizing the economic benefits of regional energy trade. Siraji Ezama (NRM, Aringa County) suggested the project would be good business for Ugandans operating in South Sudan and would bring in income. Western Youth Representative, Edson Rugumayo, argued that the export plan would help Uganda utilize its excess generation capacity, noting that in 2020, Uganda generated 2,000 megawatts but consumed only 900, leaving a surplus of 1,000. He contended that supplying power to South Sudan would be in Uganda's best interest and could help offset the national debt burden.

Defending the project, Sidronius Okaasai, the Minister of State for Energy and Mineral Development (Energy), reiterated that regional power trade is crucial for economic growth and energy security. He stated that Uganda currently has 2,056 megawatts of generation capacity but utilizes only 900 megawatts, confirming a substantial surplus available for export.

A report by the Committee on National Economy, chaired by Hon. John Bosco Ikojo, provided details on the project's infrastructure. The 299-kilometre power interconnector will originate at the Gumbo substation site in Juba, South Sudan, cross into Uganda at Nimule to a metering substation at Bibia, and terminate at the Olwiyo substation, which is supplied by the Karuma Hydroelectric Power Station. The project is projected to enable Uganda to trade 624 GWh of its surplus energy with South Sudan in the first year of operation, alongside a significant reduction in greenhouse gas emissions.

In addition to the electricity export loan, Parliament also approved two other significant financial requests. These include a €342.5 million loan from Standard Chartered Bank for the construction of a 400KV Karuma-Tororo double circuit transmission line and substation, as well as the 132/33KV Ntinda Substation project. Furthermore, a loan request for €230.4 million from Citi Bank was approved to finance the design and construction of 127 kilometres of the Jinja-Mbulamuti-Bukungu Road and 10 kilometres of Jinja City roads.