The AES Corporation has signed an agreement with the Ugandan government and the Uganda Electricity Board, to develop a hydroelectric project on the Nile. The agreement, signed in Washington, is for a 250MW facility about 6 miles from Lake Victoria near Jinja.

The cost of the project is expected to be about US$450M and the new facility is expected to take up to five years to build.

All of Uganda’s electricity is currently generated at the 180MW Owen Falls hydro project, but demand has risen to about 240MW and is growing at the rate of 50MW annually. Uganda is presently upgrading the Owen Falls hydro station, by adding five more 40MW units. The final unit is scheduled to come on-line in April, by which time demand is expected to be about 260MW.