Uganda to borrow Shs283bn to build dam


Bujagali dam on River Nile


Cabinet has approved the proposal to borrow up to euro 85 million Euros (about Shs 283.3b) from France and Germany to finance the construction of the 44.7 mw Muzizi hydropower project and the associated transmission line.

Euro 45 million will come from the French Agency for Development (AFD) and euro 40 million from Kreditanstalt Fur Wiederaufbau (Kfw), the Germany Development Bank.

The National Development Plan 2010-14 sets a power sector development target of annual per capita consumption increasing from 75kWh/capita to 674kWh/capita, the Information and National Guidance minister, Jim Muhwezi told press yesterday.

“This target requires an additional 3,500MW to Uganda’s existing National Grid. With the Bujagari Hydropower project now in operation, the National Grid has a capacity of 850MW. “

Large Hydropower projects listed under the NDP which had undergone feasibility studies and were yet to start construction included Karuma (600MW) and Isimba(183MW) hydro power projects which were selected for immediate development to be followed by the 600 MW Ayago hydropower plant. Pre-feasibility studies for Ayago hydro power project have been completed and feasibility studies are ongoing.

Among the interventions required to achieve the NDP strategy of developing mini hydro power plants to generate 150 MW; is construction of Muzizi, Kikagati, Nshongyenzi, Waki and other mini hydro power projects.

Feasibility studies for Muzizi 44.7MW have been completed and the next phase is construction.

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