Uganda and South Sudan have signed a Power Sales Agreement to stimulate bilateral electricity trade and socio-economic growth in border towns, Uganda's Ministry of Energy said in a statement.
"Today's signing ceremony marks the beginning of serious cooperation in power trade between Uganda and South Sudan," Uganda's Minister of Energy Ruth Nankabirwa remarked.
Under the agreement, the East African nations will focus on developing the 400kV Olwiyo-Juba transmission line of 308km. The line runs for 138km on the Ugandan side and 170km in South Sudan and is to pick up power from Olwiyo substation, which is already operational at 132kV.
The substations in Olwiyo and Bibia (near the Elegu border crossing in Uganda) will also be extended, as will the substation in Juba.
Uganda and South Sudan are also cooperating in the power distribution segment, where distribution networks have already been built in the border towns of the countries.
This development follows a December 2015 Memorandum of Understanding on the advancement of electricity transmission and distribution infrastructure to link the two countries.
Kampala and Juba enjoyed close economic relations prior to the conflict that broke out in December 2013 in South Sudan.
However, the hostilities that erupted five years later caused a steady decline in Uganda's exports.
In 2018, Uganda became the guarantor of the peace agreement on South Sudan, which was signed between the warring parties.
This January, Uganda's Vice President Jessica Alupo met in Juba with South Sudan's President Salva Kiir, where the parties agreed to strengthen bilateral relations.