The federal government of Uganda has secured a credit facility of $500m from China to finance its temporarily suspended Karuma hydroelectric project on River Nile.
Funds allotted by China will be added to government’s co-financing amount of $700m. The 600MW project is estimated to cost nearly $2bn, according to Reuters.
Nonetheless, Uganda is hopeful of obtaining remaining funds from other development companies.
With additional funds in place, the developers are expected to commence the development of the facility before the end of 2013.
The developments follow an announcement by Uganda President Yoweri Museveni earlier in April 2009 stating that the project should be funded by itself.
Uganda, meanwhile, is anticipating a double digit growth in economy following the power production from the Karuma project and also the commencement of oil production in 2017.