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Uganda Grid-based Output Based (OBA) Facility


Period
2012 - 2017

Implementing agencies
Rural Electrification Agency

African partners
Government, Other public body, Private sector

Names of African partners involved
GPOBA, Rural Electrification Agency, the Government of Uganda

Donor involvement (incl. IOs)
Multilaterals involved, Bilaterals involved

Names of donors involved (incl. IOs
the Global Partnership on Output-Based Aid (GPOBA), IDA, the Government of Germany and the EU through KfW and the Government of Uganda

Geographical scope
Country

Countries where active
Uganda

Sectors
Renewables, Non Renewables, Electricity

Sub Sectors (Electricity)
Electricity system

Type of intervention

Type of technical assistance
Policy support / institution building, Project preparation / implementation

Gender focus
No

Climate focus
Yes

Type of financing
Debt

Main objectives
The Project will connect 132 500 low-income households (655 000 direct beneficiaries) to electricity grids. The OBA Facility will provide subsidies to help fill the gap between what the user is able and willing to pay for connecting to the grid, and what it costs the electricity distribution companies to make these connections.

Main activities
The subsidies are channeled through Rural Electrification Agency. The “output” against which subsidies are disbursed are household connections to the electricity network and some demonstration of electricity consumed. The OBA service provider is reimbursed 67% of the costs of a household connection after independent verification of installation of a working connection, and 33% after 6 months demonstration of use of service through billing records. The OBA service providers are electricity distribution companies licensed to make household connections, provide electricity to households, and undertake other aspects of electricity service, including billing, collections, and customer service. The subsidy amount to be paid per connection is the Electricity Regulatory Authority (ERA) approved connection cost for the Utility Operator (which on average is about US$200)

Comments

Sources
http://www.rea.or.ug/subsidies.html

Contact information
rea@rea.or.ug

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