Uganda grid-based Output Based Aid (OBA) project is a 4-year project funded by the the Global Partnership on Output-Based Aid (GPOBA) through the World Bank (IDA), the Government of the Federal Republic of Germany and the European Union through the Germany Financial Cooperation (KfW) and the Government of Uganda. The Project provides for subsidization of household electricity connections on an output basis to defray the capital costs associated with obtaining electricity connections, which has been a significant barrier for rural households. Project will cost a total of US$ 21.69 million; US$ 4 million by GOU and €5 million by German Government (equiv. US$ 6.25 million) through KfW and US$ 5.5million by GPOBA (World Bank) and EUR3.95million (equiv. US$4.94 million) by the EU-ACP through KfW
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)
The Project will specifically target potential customers in two categories;

Those households within the low voltage network of a utility operator, who need a no-pole service and are able to pay for the energy consumed but have not connected themselves for at least 18 months after commissioning of the network.
Those eligible poor households identified in newly electrified areas where poverty mapping has been undertaken by an independent consultant.
The project aims at connecting about 132,500 low-income Ugandan households (or approximately, 655,000 beneficiaries) to electricity grids throughout Uganda, in rural, peri-urban and urban areas in four years