The European Union is set to allocate 60 million euros ($63 million) for the enhancement of one of Uganda’s major hydropower facilities. This investment aims to address a portion of the funding shortfall in the nation’s aging energy infrastructure, as stated by a senior diplomat on Monday.
Situated at the source of the River Nile in Jinja, Uganda’s eastern region, the Nalubaale and Kiira hydropower plant complex generates approximately 380 megawatts (MW) and stands as the country’s most ancient power facility, inaugurated in 1954.
South African energy behemoth Eskom managed the plant through a 20-year concession that concluded earlier this year. Following the concession’s expiration, the government reassumed control of the facility.
“We’ll be investing some 60 million euros … in the rehabilitation of Kiira and Nalubaale hydropower plant in order to provide reliable energy for Uganda’s industrialisation,” Jan Sadek, the EU’s ambassador to Uganda, told a mining conference in the capital Kampala.
He did not specify the commencement date for the project or clarify whether the funding would be provided as a grant or credit.
Sadek mentioned that the financing would be allocated as part of the EU’s global gateways strategy, aimed at contributing to the achievement of the United Nations’ Sustainable Development Goals by 2030.
Uganda’s energy infrastructure is grappling with inadequate funding, and the aging components of the network have resulted in frequent power outages and occasional breakdowns.
Uganda currently possesses an installed power capacity of approximately 1,400 MW, primarily derived from its hydroelectric dams. This capacity is anticipated to increase to 2,000 MW upon the commissioning of the Chinese-built Karuma plant, located on the River Nile, later this year.
