Uganda's Amari Transmission Project Reaches Landmark US$50 Million Financial Close

Earlier this year, Electron Intelligence released the Africa’s Power and Energy Transition Investment Report 2025, providing a data-driven look at the continent’s shifting energy landscape. The findings revealed that $13.84 billion flowed into Africa’s energy sector last year, the report also highlights a stark “execution gap” in project delivery: while 74.5 GW of new capacity was announced, only 14.6 GW actually reached installation.
Read it here:EI Report

The Amari Power Transmission project in Uganda has reached a US$50 million financial close, marking an important test of a private-capital model in African transmission. Gridworks, a subsidiary of British International Investment (BII), developed the project in collaboration with the Government of Uganda and the National Transmission Utility (UETCL). Siemens Energy has been appointed as the Engineering, Procurement, and Construction (EPC) contractor, with commissioning expected in 2028.

What the Project Involves

The project upgrades transformer capacity at four high-voltage substations on the national grid: Tororo (220kV) in eastern Uganda near the Kenyan border; Nkenda (132kV) in western Uganda, positioned as the future interconnection point with the DRC; and Mbarara North (132kV) and Mbarara South (220kV), both in western Uganda.

The Independent Transmission Project Structure

The project is governed by two agreements, signed in February 2026: a Transmission Services Agreement (TSA) with UETCL and an Implementation Agreement with the Ministry of Energy and Mineral Development.

The TSA defines the commercial terms: Gridworks earns revenue based on the availability of the upgraded assets, not on electricity volumes. This creates a predictable cash flow tied to asset performance rather than demand.

The Implementation Agreement: establishes the government’s obligations and provides sovereign backing for the project. Under this structure, Gridworks finances and manages the four substation upgrades under a long-term services contract. The state retains ownership of the grid. Gridworks takes on project risk in exchange for contracted availability payments.

Amari is the first independent transmission project (ITP) on the continent to reach financial close. Others are in development across African markets, but this is where the model moves from concept to construction.

What It Means for Uganda

The immediate impact is on industrial users. More reliable power directly supports the government’s agenda to strengthen manufacturing competitiveness. Beyond industry, the upgraded substations allow the grid to absorb more renewable energy and create the capacity needed for regional power trade with Uganda’s neighbours.

At the network level, the project addresses system losses and improves overall power quality. It also supports the evacuation of current and future generation capacity, a constraint that has limited how much power Uganda can move across its grid. Construction will also generate employment opportunities during the build phase.

As a pilot for private-sector transmission in Uganda, the project has supported the creation of a regulatory framework to attract private finance for future grid investment.

The Takeaway

Transmission infrastructure in Africa has traditionally been financed through public budgets and development loans. Amari introduces a different structure: private capital based on contracted availability payments, backed by government agreements, without requiring public debt. Revenue tied to asset availability removes demand risk. Sovereign backing through the Implementation Agreement provides the contractual foundation for capital recovery.

Gridworks already has ITPs in development in Mozambique, Ethiopia, and eastern Uganda. Amari does not yet prove that the ITP model is broadly replicable, but it does show that private capital can be mobilised for transmission through an availability-based structure with sovereign support.

Deals and Investment

Sun King Signs MOU with Ethiopian Investment Commission, Commits US$150M to Expand Solar Access. Sunking

AfDB Approves US$5.65 million to Pioneer New Climate Finance Instrument for Off-Grid Renewable Energy projects in Africa’s Fragile States. AFDB

Gold Standard and SE for ALL launch first carbon market methodology to phase out fossil fuel generators. SEFORALL

IFC supports IPT Powertech to deliver clean telecom power across Ethiopia, Liberia, and Sierra Leone. IFC

PIDG backs Afreenergy Solar to scale access to clean energy for C&I customers in West and Central Africa. PIDG

UGEAP provides a US$13 million facility to Sterling Bank to promote renewable energy lending in Nigeria. Cygnum Capital

Regulatory and Policy Updates

NERC Mandates Enhanced Communication for Power Sector. NERC

NERC, State Regulators, inaugurate Forum of Nigerian Electricity Regulators (FONER) to Improve Electricity Regulation. NERC

NERSA releases a notice of publication of municipal electricity tariff applications for the 2026/27 financial year. NERSA

Eskom extends the rooftop solar registration fee waiver by six months and advances the prepaid residential option. ESKOM

The Radar

8-9 April| Africa Energy Marketplace by AFDB, Libreville, Gabon. AFDB

16th April| Kenya Clean Energy Week, Nairobi, Kenya. KEW

21-24 April | ARE Energy Access Investment Forum, Nairobi, Kenya. EAIF

22-23 April| Invest in Africa Energy, Paris, France. IAE