Uganda Inaugurates $1.7 Billion China-Funded Hydropower Plant
Uganda has officially commissioned its largest electricity generation facility, the 600-megawatt (MW) Karuma Hydropower Project on the River Nile. The plant, which cost $1.7 billion, was financed primarily through a loan from China, according to a Reuters report.
Built by Sinohydro Corporation, the project will provide a significant boost to Uganda’s power generation capacity, bringing it to just over 2,000 MW. Originally launched in 2013, the project experienced multiple delays and missed several completion deadlines before its eventual commissioning.
At the ceremony held in Kiryandongo, northern Uganda, Chinese Ambassador Zhang Lizhong hailed the plant as a “flagship project of China–Uganda cooperation”. He further emphasized that the facility would provide millions of households with affordable electricity and promote sustainable clean energy development across East Africa.
In addition to supplying domestic energy, Uganda exports electricity to neighbouring countries such as Rwanda, Tanzania, and Kenya. As part of the project, a 400 kV transmission line stretching 248 kilometres was unveiled that will carry the newly generated power. Plans are in place for a $180 million transmission line that will enable Uganda to export electricity to energy-scarce South Sudan.
Uganda’s Energy Minister, Ruth Nankabirwa, noted that the project faced numerous logistical challenges, including delays caused by the COVID-19 pandemic.
China’s Exim Bank provided $1.4 billion, covering 85% of the total cost, with the Ugandan government funding the remainder.
President Yoweri Museveni reiterated the government’s commitment to ensuring widespread access to “cheap, reliable, and affordable electricity” for Ugandans.
The Karuma plant is the second major hydropower project financed by China in Uganda in recent years. In 2019, Uganda inaugurated the 188 MW Isimba Hydropower Plant, funded through a $500 million Chinese loan and built by the China International Water and Electric Corporation.
With these developments, Uganda might strengthen its position as a regional energy hub, fostering economic growth through improved infrastructure and sustainable energy initiatives.
