Uganda signs US$95 million agreement to develop 44.7-MW Muzizi hydroelectric project


Germany’s state controlled KFW Development Bank, the French Development Agency (AFD) and the government of Uganda, signed a US$95 million agreement this week to construct the 44.7-MW Muzizi hydroelectric project on the Muzizi River in the district of Kibaale, which borders the Ndaiga and Hoima districts in western Uganda.

Earlier this year Information Minister Jim Muhwezi said, Uganda’s Finance Ministry would borrow US$50 million from the AFD and US$44.3 million from KFW to fund the project.

Muzizi is a public project financed under the Mutual Reliance Initiative with KFW, AFD, and Uganda. Groundbreaking on the project is scheduled for Aug. 2016.

Uganda Electricity Generation Co. Ltd. (UEGCL) Managing Director, Harisson Mutekanga, said, the project would cover the districts of Kibaale, Kyenjojo, Kabarole and Ntoroko.

UEGCL officials said design development is beginning with engineering studies and the government will begin preparing tender documents after reviewing feasibility studies already on file.

Two large hydro power plants, 600-MW Karuma and 188-MW Isimba, are being developed on the Nile River. Uganda currently has an installed electricity generation capacity of 850 MW.

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