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Uganda signs framework agreement with China to boost rural electrification

  KAMPALA, Oct. 18 (Xinhua) -- Uganda on Thursday signed a framework agreement with China to borrow about 212.7 million U.S. dollars from the Asian country to boost its rural electrification.

  The agreement was signed by Matia Kasaija, Uganda's finance minister, and Zheng Zhuqiang, Chinese ambassador to Uganda.

  Kasaija said the east African country currently produces excess electricity and therefore the loan will be critical in extending power supply to rural areas.

  Over 287 sub counties across the country are set to benefit from the projected scheduled to start early next year, according to ministry of finance.

  Zheng said the project will increase the percentage of rural areas that have electricity, noting that power is important in fast tracking development.

  Uganda plans to increase electricity rural network coverage from 10.6 percent to 26 percent by 2022 and 51 percent by 2030. The country anticipates realizing universal electrification in rural areas by 2040.