Uganda: Rural electrification loan

The World Bank’s International Development Agency is considering a $100m loan for the Uganda Energy for Rural Transformation III (ERT-3) project. This aims to support investments in on- and off-grid projects and provide technical assistance. The government will provide $10m of financing, and an $8.9m grant from the Global Environment Facility is on the cards. ERT-3 will go to the World Bank board in July 2014, following the completion of appraisal in February.Faced with significant challenges in bringing grid power to small rural communities, Uganda failed to meet a government target of raising the rural electrification rate to 10% by 2010 from 1% in 2001.