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- PIGL, the Chinese firm has applied for license to develop a US $1.4bn hydropower plant
- Ayoga Hydroelectric power plant with a capacity of 840MW has the potential to expand the country’s generation capacity by 40%
Spokesperson for Uganda’s State-run power regulator, Electricity Regulatory authority (ERA) has stated that a Chinese firm has applied for a license in Uganda to develop a US $1.4bn hydropower plant. The proposed plant Ayoga Hydroelectric power plant with a capacity of 840MW has the potential to expand the country’s generation capacity by 40%. Mr. Julius Wandera, the spokesperson of ERA added that the authority will be undertaking due diligence of the company and has sought comments from the public on the proposed project. ERA licences all power generators in the country and is also responsible for setting generation and end-user power tariffs. According to sources, the Powerchina International Group Limited (PIGL), is the Chinese firm that has submitted application for licence to develop the Ayago Hydroelectric Power Station, located on a section of River Nile between the lakes Kyoga and Albert.
Meanwhile, Sinohydro Corporation of China is in the process of completing early this year the Karuma hydroelectric dam, upstream of Ayago, currently Uganda’s largest power project.
According to their application, the firm plans to raise funds for the project through a 25%/75% mix of equity and debt.
Government of Uganda has been trying to woo foreign investors to boost power production to meet fast-growing demand. Some of the measures adopted by the government included the abolition of subsidies for consumers and the introduction of a tariff-setting system.
It is also reported that another Chinese state-owned firm proposes to develop the biggest solar plant in Uganda. China Gezhouba Group International Engineering Company (Gezhouba International Company), a subsidiary of China Gezhouba Group Company has entered into a framework contract for the 500 MW photovoltaic power generation project in Uganda.
