The African Development Bank (AfDB) has approved €7.33 million, about Shs30 billion, to complete compensation payments to people affected by the Uganda Rural Electricity Access Project (UREAP) Phase I.
The funding was approved on April 7, 2026. It will cover families and individuals whose land or property was affected during the construction of electricity lines. It will also support completion of remaining works under the project.
AfDB said the extra funding will close a gap that emerged after costs increased during implementation. It will also help government meet environmental and social obligations. These include paying all affected households and restoring their livelihoods.
UREAP Phase I started in 2015 to extend electricity to rural and peri-urban areas. Peri-urban areas are places just outside towns that are growing fast. The project has already connected 137,770 households to the national grid. This has benefited about 670,000 people.
AfDB regional energy manager Aleymahu Wubeshet-Zegeye said the financing ensures that all affected communities are supported. He said it will help complete the project and deliver long-term benefits.
At the same time, the bank approved the second phase of the project, known as UREAP II. The new phase will cost €104.39 million. It includes loans and a grant from AfDB and Climate Investment Funds, with additional funding from the Government of Uganda.
UREAP II will build more electricity lines across the country. It will cover 624 kilometres of medium-voltage lines and 2,154 kilometres of low-voltage lines. Medium-voltage lines carry power over long distances, while low-voltage lines deliver it to homes and businesses.
The project aims to connect about 259,723 new users over six years. These include more than 250,000 households, 3,000 businesses, schools and health centres. It is expected to give nearly 1.18 million people access to electricity for the first time.
Officials say the project will reduce reliance on firewood and other traditional fuels. It will also support economic activity in rural areas.
UREAP is part of AfDB’s strategy for Uganda between 2022 and 2026. It also contributes to a wider plan to connect 300 million people in Africa to electricity by 2030.
