The project that is estimated to cost $2.2bn is touted to be the largest hydro project in the country after recently commissioned Bujagali project.
The collaboration follows a meeting held between Ugandan president Yoweri Museveni and Chinese President Xi Jinping for BRICS summit in South Africa earlier in March 2013.
Confirming the speculations, state minister for energy and minerals development Simon D’ujang stated that the ministry had begun discussions with China negotiating the funding agreement for a concessionary loan, reported Reuters.
"We hope we’ll get them to agree to help us and once they give us the money they will also supply the contractor so that we don’t have to go through protracted procurement procedures," revealed D’ujang.
Also, Chinese state-owned China International Water & Electric is reportedly pre-qualified for the development of project.
In addition, China is expected to provide a contractor within next six months to commence the construction by the end of 2013.
