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Launching the USD45.14m Bujagali interconnection project in Uganda

President Yoweri Museveni is set to launch $45.14m Bujagali interconnection project increasing access to less expensive and more reliable electricity supply to the national grid.

The project is an associated power transmission line system that evacuates power from the Bujagali hydropower station to the national grid meeting the energy needs for Uganda’s population for social and economic development.

Prime Minister Amama Mbabazi in February commissioned the first 50 MW phase of the Bujagali Hydro Electricity Dam Project at Jinja.

The project was designed to reduce the rate of load shedding and boost the economic growth of the country. Uganda’s economic growth has been affected due to erratic power load shedding as demand outstrips supply with the country forced to use more costly, thermal-generated power.

The delayed construction of Bujagali dam led to an increase in the cost of the project and affected the economy as several businesses made losses. Others closed due to insufficient power supply.

The construction of the US$600mn 250 MW project is owned by Bujagli Energy Ltd (BEL), which is jointly owned by US-based Sithe Global Power LLC and Industrial Promotion Services Kenya Ltd.

The World Bank Group , European Investment Bank, African Development Bank, Netherlands Development Finance Company, German’s KFW and Absa Capital, are among the project financiers.

By Ibrahim Kasita
The New Vision Newspaper
04-May-2012

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