Arop
By: Emmanuel Garjiek
The African Development Bank (AfDB) announced on Monday that funding will be provided to support the purchase of electricity from neighboring Uganda to South Sudan.
Themba Bhebhe, AfDB’s Country Manager for South Sudan, told reporters in Juba that the project will be funded equally by the AfDB and the European Union. He added that the project is in advanced stages and may be completed in the second quarter of this year.
He said, “Yes, the project was approved in the first week of December 2024 by our board, and it is about USD 200 million. We must announce that we are financing this project with the EU, which is providing us with around USD 50 million, and we are covering the rest.” He continued, “At this stage, we should be signing a financing agreement with the government and the EU, and also launching the project formally.”
He pointed out that the project will be implemented directly by the national energy utility, with multinational companies serving as subcontractors.
“This is a five-year project, assuming there is peace along this corridor, and we do not anticipate any problems that could disrupt the project’s implementation,” he said. “So, yes, I can confirm that the bank has mobilized enough resources in partnership with the EU to implement the project. After the project is completed, the cost of purchasing electricity in South Sudan will drop from 42 cents per kilowatt hour to 12 cents per kilowatt hour.”
He further explained, “The challenge South Sudan is currently facing in terms of electricity is threefold: supply, adequate generation, distribution, and cost. So, I think the answer lies in cost. As I mentioned, according to the studies we’ve conducted, electricity costs about 42 cents per kilowatt hour, which is the average tariff paid by citizens in South Sudan.”
He added, “Obviously, this depends on whether you’re residential or industrial, but that is the average. Looking at the region now, the cost is about 10 to 12 cents per kilowatt hour, meaning South Sudanese are paying four times more than their counterparts in the region.”
“So, what this project will do is significantly reduce tariffs to about an average of 11 or 12 cents per kilowatt hour,” said Bhebhe.
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