The construction of the UGX30bn ($13m) project was started in 2007 in Mpanga village, Kabeza parish, Kanara sub-county under the funding of South Asian Energy System contracted by a Sri Lankan-based NGO VSHYDRO.

When Bujagali, Karuma, Ayago and Isimba power stations are completed, the country will have acquired 80MW from River Nile.

Thie project will increase the hydro potential of River Mpanga as it drops down over the great western rift valley onto Lake George.

Uganda Minister for Energy and Mineral Development Hillary Onek said that the facility, with a design flow of 16m3/s, will deliver an annual energy of 68GW hours.

The Minister also said that after connecting the project to the national grid, the Rural Electrification Agency will distribute the power to the community in Kamwenge District at a small fee.