India to fund Isimba power project

By Raymond Baguma

The Indian government is to finance the construction of the 180 megawatt (Mw) Isimba hydropower project with a $450m loan to boost Uganda’s power generation.

Isimba will be the fourth largest hydropower project in Uganda. Other projects are 600Mw Karuma dam, the 600Mw Ayago power station and the 250Mw Bujagali power project that was switched on last year.

Recently, a bilateral meeting between Uganda and a delegation from India led by the country’s minister of external affairs, Salman Khurshid, was held at the Speke Resort Hotel Munyonyo.

The Indian delegation also included Sanjay Sudhir, the joint secretary from the external affairs ministry and Prabhat Kumar, the joint secretary for energy security.

The Ugandan delegation included ministers Amelia Kyambadde (trade), Dr. Ruhakana Rugunda (ICT) and Uganda’s high commissioner to India Nimisha Madhvani.

Khurshid noted that Uganda is an emerging oil and gas producer, with a growing population of young people who have the potential to change their livelihoods.

Khurshid said in ICT, India will exchange with Uganda E-government modules in software, training and set up IT institutions.

He added that India wants to participate in the processing and exploration of Uganda oil and gas, train Ugandan oil professionals and invest in the petrochemical industry.

Khurshid said India will fast-track the establishment of the India-Africa institute of foreign trade in Uganda and set up a food processing industry incubation centre. The country will also join a private sector partner to avail agriculture equipment to farmers who lack the capacity to purchase modern farming equipment.

Kutesa said India will cooperate with Uganda in the development of energy, ICT, defence and security and agriculture and food processing sectors.

He urged Ugandans to enter the Indian duty-free and quota-free market by taking advantage of the country’s initiative to open its market to 187 products from Africa.

According to the Indian ministry of commerce, the volume of trade between Uganda and India stands at $450m, with India exporting to Uganda goods worth $430m. Uganda exported goods worth $25m to India in 2012.