Govt signs Shs270 billion Muzizi hydro-power deal


Government of Uganda, Germany Development Bank (KfW) and the French Development Agency, have signed a €70m (aboutShs273b) agreement towards financing the construction of the Muzizi hydro-power project.

Speaking at the handover of the project to the implementation engineers last week, Uganda Electricity Generation Company Limited (UEGCL) managing director Harisson Mutekanga said the consultancies to design the project, which will cover the districts of Kibaale, Kyenjojo, Kabarole, and Ntoroko, will cost €3,959,771 (about Shs15.5b).

“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,” Dr Mutekanga said.

According to Dr Kamal Gautam, the consultants’ team leader, the project is kicking off with engineering studies to get the designs, prepare tender documents and review feasibility studies that have been done by other companies.

He added that the project will entail community participation in the implementation of the infrastructure especially the roads because it will be the people to decide where they want the infrastructure.

The project is being financed under the mutual reliance initiative which is a collaboration between KfW, French Development agency and the government of Uganda where KfW will contribute €4 million (aboutShs16b), French development agency €45 million (about Shs175b) while the government of Uganda will fork out €21 million (about Shs82b).

According to Mr Mutekanga, UEGCL is responsible for the development of the 44.7-Megawatt hydro-project whose ground breaking is expected in 2017 and completion in 2019.
When complete, the project is expected to provide power to more than 60,000 households.

The project is at River Muzizi which is 6km upstream of Lake Albert in Kibaale District extending to Kabarole, Kyenjojo and Ntoroko districts in western Uganda.

related figures

Shs15.5 billion
The cost of the consultancies that will design the Muzizi hydro-power project.


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