The Uganda Government has signed an agreement with Germany-based KfW Development Bank and the French Development Agency to jointly invest €70m on the construction of the 44.7MW Muzizi hydropower project in the district of Kibaale.

Under the mutual reliance initiative, KfW agreed to provide €4m, while French Development Agency and the Uganda government will contribute €45m and €21m, respectively, for the project.

Planned to be developed by Uganda Electricity Generation Company (UEGCL), the hydro facility will be built at River Muzizi, and will also spread in the districts of Kibaale, Kyenjojo, Kabarole, and Ntoroko.

UEGCL managing director Harisson Mutekanga said that around UGX15.5b ($4.3m) will be spent on consultancies to design the project.

"We are getting a resettlement action plan consultant to work with the government valuer to look at the affected people and determine the right amount for compensation."

Construction work on the project, which expected to generate power to more than 60,000 households, is scheduled to be completed in 2019.

According to UEGCL officials, the design development will commence with engineering studies, while the tender documents will be prepared by the government upon completion of feasibility studies, which are already in place.

As part of this effort, UEGCL also selected Austrian firm ILF Consulting Engineers to implement the power project, reported NTV