The cabinet has approved the proposal to borrow funds as the hydro project has completed feasibility studies and is ready to commence construction activities.
The government intends to secure €45m from the French Agency for Development and €40m from KfW.
Uganda Information and National Guidance Minister Jim Muhwezi said that the proposed project, which is expected to meet growing electricity demand, is part of Uganda’s National Development Plan (NDP) 2010-14 strategy.
The NDP aims to increase the country’s annual per capita consumption to 674kWh from 75kWh by adding an additional 3,500MW to the existing grid.
In line with this, the government intends to develop mini-hydro power projects such as Muzizi, Kikagati, Nshongyenzi, and Waki among others, Muhwezi added.
Uganda currently has 850MW installed electricity generation capabilities, and is working on Karuma and Isimba projects on the river Nile, which are expected to produce around 780MW.
