Uganda’s acute power shortages are to be eased by a new 255 MW hydropower scheme near the Bujagali Falls on the Nile River.

Alstom Hydro and Italy’s Salini Hydro Ltd are to construct the Bujagali power plant, which is scheduled to come on-line in 2011. The project is backed by the World Bank, the European Development Bank and the African Development bank.

The Bujagali run-of-river scheme will reuse the water released from two existing upstream hydro plants – Nalubaale (180 MW) and Kiira (200 MW). Alstom will supply the project’s hydro and electro-mechanical equipment under a EUR160 million contract with Salini.

The project is a public-private partnership between the government of Uganda, state-owned transmission company UETCL and Bujagali Energy Ltd, a consortium of private sponsors.

Alstom will provide five turbine-generator units, control and protection systems and balance of plant equipment.

The project has been criticized by environmental groups, which say that it will directly affect the lives of 6800 people and submerge agricultural land.