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R U Y R C A N L E G EL A CT N RIFICATIO Rural Electrification Agency Ministry of Energy and Mineral Development ANNUAL RURAL ELECTRIFICATION REPORT 2011/12 The peoples electricity link H.E President Yoweri Kaguta Museveni commissions the Kayunga-Busana Powerline Rural Electrification Agency Ministry of Energy and Mineral Development Vision Universal access to electricity by 2035 Mission To facilitate provision of electricity for socio-economic rural transformation in an equitable and sustainable manner Objectives 1. Promoting equitable rural electrification access and having special regard to those areas of the community that are currently marginalized 2. Establishing and maintaining a comprehensive database on Uganda's Rural Electrification sub-sector to facilitate informed decision making 3. Enhancing the available financial resource base for Rural Electrification through strategic fundraising 4. Promote institutional sustainability of the Rural Electrification Fund Core Values The REA organizational philosophy is anchored in the following three core values; · Responsiveness to stakeholders needs, reliability and accessibility at all times · Effectiveness and efficiency anchored in professionalism, teamwork, time management, innovation and practicing the concept of a learning organization · Accountability and transparency in the conduct of public affairs Ps: the acronym REA that rhymes with the Agency's own name enables staff internalize the organisational philosophy ANNUAL RURAL ELECTRIFICATION REPORT 2011/12 The peoples electricity link i Rural Electrification Agency Ministry of Energy and Mineral Development MAP HIGHLIGHTING RURAL ELECTRIFICATION STATUS AS OF END OF FINANCIAL YEAR 2011/12 ANNUAL RURAL ELECTRIFICATION REPORT 2011/12 ii The peoples electricity link Rural Electrification Agency Ministry of Energy and Mineral Development CONTENTS ABBREVIATIONS AND ACRONYMNS .....................................................................................................5 FOREWORD ...........................................................................................................................................6 EXECUTIVE SUMMARY ...........................................................................................................................7 1.0 INTRODUCTION ...............................................................................................................................9 2.0 OPERATIONAL PERFORMANCE OF THE RURAL ELECTRIFICATION PROGRAMME FOR THE FINANCIAL YEAR JULY 2011 –JUNE 2012 .......................................................................................................14 3.0 SOCIAL INTERMEDIATION, ENVIRONMENTAL AND WAYLEAVES ISSUES ......................................21 4.0 CAPACITY BUILDING ......................................................................................................................26 5.0 FINANCIAL PERFORMANCE FOR THE YEAR 2011/2012 ..................................................................28 6.0 PROJECT IMPLEMENTTAION PLANS FOR 2012/13 ..........................................................................29 7.0 IMPLEMENTTAION CONSTRAINSTS AND PRPOSED SOLUTIONS ....................................................33 8.0 CONCLUSION ................................................................................................................................ 36 9.0 AUDITED REPORTS .........................................................................................................................37 ANNEX I PROJECTS COMPLETED AND COMMISSIONED DURING 2010/2011 FY ...............................38 ANNEX II PROJECTS UNDER IMPLEMENTATION ...................................................................................42 ANNEX III PROJECTS UNDER PROCUREMENT .......................................................................................51 ANNEX IV PLANNED PROJECTS ............................................................................................................52 ANNUAL RURAL ELECTRIFICATION REPORT 2011/12 The peoples electricity link iii Rural Electrification Agency Ministry of Energy and Mineral Development ABBREVIATIONS AND ACRONYMNS BADEA The Arab Bank for Economic Development in Africa BECS Bundibugyo Electricity Cooperatives Society EEW Energy Efficiency Week ERA Electricity Regulatory Authority ERT Energy for Rural Transformation HFO Heavy Fuel Oil IREMP Indicative Rural Electrification Master Plan JICA Japan International Cooperation Agency KIL Kilembe Investments Ltd KW Kilo Watt MEMD Ministry of Energy and Mineral Development MW Mega Watt NORAD Norwegian Agency for Development Cooperation PACMECS Pader - Abim Cooperatives Multipurpose Electricity Cooperative Society PPA Power Purchase Agreement PPP Private Public Partnerships PVTMA Photovoltaic Targeted Market Approach REA Rural Electrification Agency REB Rural Electrification Board REF Rural Electrification Fund RESP Rural Electrification Strategy and Plan SFD The Saudi Fund for Development SIDA Swedish International Development Agency UEDCL Uganda Electricity Distribution Company Limited UETCL Uganda Electricity Transmission Company Limited WENRECO West Nile Rural Electrification Company ANNUAL RURAL ELECTRIFICATION REPORT 2011/12 iv The peoples electricity link Rural Electrification Agency Ministry of Energy and Mineral Development FOREWORD I am pleased to introduce the 2011/12 Annual Rural Electrification Report in accordance with the requirements of Section 64(2) of the Electricity Act (1999). The Government, through its rural electrification programme, has a goal of increasing the Rural Electrification coverage from 1% in 2001 to 10% by 2012 as spelt in its Rural Electrification Strategy and Plan (RESP) (2001). This report covers activities undertaken by the Government of Uganda, its development partners and the private sector Hon. Eng. Irene Muloni (MP) in implementing the rural electrification programme. Minister for Energy and The report also highlights the social intermediation, Mineral Development environmental issues, way leaves issues, capacity building activities and the financial performance of the Agency. Through Private Public Partnerships (PPP), the Government has endeavored to promote renewable energy technologies including the development of Mini hydropower plants, cogeneration facilities and solar energy utilization. So far, one of the main constraints to the programme is the current inadequate supply onto the main electricity grid. It is hoped that the construction of the 250MW Bujagali, 700MW at Karuma, 18MW in Mpanga, Kamwenge, 6MW in Isasha and 3.5 in Nyagak will go along way towards Hon. Eng. Simon D’Ujanga reducing the load shedding experienced in the country Minister of State for Energy at the moment and boosting the new rural electrification networks being added on the grid. The programme continues to progress with support from development partners including; the World Bank, the Royal Nowergian Government and the Japanese Government. New players on board include the Arab Bank for Economic Development in Africa (BADEA) and the Saudi Fund for Development (SFD) and I am sincerely grateful to them. I would like to thank His Excellency the President and Hon. Peter Lokeris my Colleagues in Cabinet, Parliament and Local District Minister of State for Mineral Development Authorities for the continued guidance and support they have provided to scale up electricity access. I particularly want to thank my Colleagues; the Ministers of State in the Ministry, the Permanent Secretary / Chairman of the Rural Electrification Board and members of the Rural Electrification Board (REB), the Executive Director and members of staff of the Rural Electrification Agency. Their hard work and dedication is enabling Government draw closer to achieving its goal of providing electricity in an equitable manner for socio- economic rural transformation. For God and My Country ANNUAL RURAL ELECTRIFICATION REPORT 2011/12 The peoples electricity link v Rural Electrification Agency Ministry of Energy and Mineral Development EXECUTIVE SUMMARY The Annual Rural Electrification Report 2011/12 provides the status of the progress and milestones of the rural electrification plan as of June 2012. The report underscores the operational and financial performance of the Rural Electrification Programme in line with its Short and Medium term Plans that were set to meet the set goals. The report also highlights the institutional capacity building programme, the implementation constraints, mitigation measures and lessons learnt in the process of implementing the targets set in the Rural Electrification Strategy and Plan (RESP) (2001). A new RESP was finalized this financial year with consultancy backing from the national Rural Electric Cooperation Association (NRECA) International Ltd and support from the World bank under ERT programme. The main goal of the RESP is to raise the rural electrification rate to 22% from its current rate. The new RESP (2012-2021) will be used as a trajectory of achieving the Universal Electrification Access by 2040, taking into account lessons learnt during the 2001-2012 implemetation period. The focus in this RESP will be Public Financing as opposed to the previous one that focused on Public Private Ptnerships. Additionally, the new RESP introduces thirteen (13) commercially viable servive territories. In line with the country's electrification vision and goals as spelt out in its strategic documents including the National Development Plan (NDP) (2010)
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