The African Development Bank Group has approved an additional €7.33 million to complete compensation payments and outstanding works under Phase I of the Uganda Rural Electricity Access Project (UREAP), ensuring full delivery of planned development outcomes. The financing addresses revised cost estimates and remaining environmental and social obligations, guaranteeing that all affected households receive due compensation while final electricity connections are completed.
Since its approval in 2015, UREAP Phase I has significantly expanded electricity access in rural and peri-urban Uganda, connecting 137,770 households and benefiting around 670,000 people through last-mile grid connections. The project has played a key role in improving energy access for households, businesses, and public institutions, supporting broader socio-economic development in underserved areas.
According to the African Development Bank, the additional funding ensures that commitments made to communities are fully honoured and that no affected group is left behind. The completion of Phase I is intended to strengthen trust in infrastructure development while maximizing long-term development impact across connected regions.
In parallel, the Bank has also approved Phase II of the project, with a total cost of €104.39 million, combining financing from the African Development Bank, the Climate Investment Funds, and the Government of Uganda. This next phase will significantly expand Uganda’s electricity distribution network through hundreds of kilometres of new medium- and low-voltage lines.
UREAP II is expected to deliver over 259,000 new grid and mini-grid connections, benefiting more than 1.18 million people by providing first-time electricity access to households, businesses, schools, and health centres. The expansion is also expected to reduce dependence on fossil fuels and traditional biomass by improving access to cleaner and more reliable energy.
The project forms part of the African Development Bank’s Country Strategy for Uganda (2022–2026) and supports the wider Mission 300 initiative, which aims to connect 300 million people across Sub-Saharan Africa to electricity by 2030 in partnership with the World Bank Group.
