In a statement presented to the House Committee on the Budget on Tuesday, December 5, 2023, the Ministry of Energy and Minerals Development is requesting a supplementary budget of Shs128 billion for the ongoing financial year. This forms part of the Shs318 billion initially presented to the Committee. Hon. Sidronious Okaasai, the Minister of State for Energy, explained that the amount is external financing from the World Bank for the Electricity Access Scale Up Project (EASP), which faced appropriation challenges due to its delayed effectiveness.
The Budget Committee is currently processing a supplementary budget of Shs3.5 trillion for the financial year 2022/2023. This includes allocations such as Shs197 billion for road construction, Shs47 billion for medical intern deployment and allowances, and Shs37 billion for the renovation of Speke Resort Munyonyo ahead of the upcoming Non-Aligned Movement and G77 Summits.
Okaasai assured Members of Parliament that with the allocated funds, the Ministry aims to connect most households that have already installed electric poles at no cost. He emphasized that increasing electricity connections would potentially reduce the unit cost as more people contribute financially. The Minister noted that although the EASP has been operational since July 2023, additional funding is required to fully implement its activities.
The Ministry’s supplementary request also covers Shs30 billion for startup costs related to the Karuma Hydro Power Plant, including insurance, permits, service contracts, and specialized tools. Okaasai highlighted the goal of commencing commercial operations in November 2023. Additionally, he requested Shs58 billion to address shortfalls in contractual obligations for deemed energy under the Lira-Agago transmission line for the Achwa-Agago dam.
Members of Parliament approved the supplementary request but cautioned the Ministry to prioritize connecting rural households. Concerns were raised about the disbandment of the Rural Electrification Agency and its impact on equitable electricity distribution. MPs urged the Ministry to deliver on its promise and requested a detailed roadmap for the implementation of the 200,000 connections.
