Business
China Exim Bank issues payment guarantee for Karuma Dam
Publish Date: Jun 18, 2014
China Exim Bank issues payment guarantee for Karuma Dam
An artistic impression of Karuma dam
  • mail
  • img
newvision

By Vision Reporter

Chinese government owned Exim Bank, the main financiers of the ongoing 600 MW Karuma Dam project has finally signed the much awaited advance payment guarantee for the funding of the project.

According to a document titled ‘Advance payment Guarantee No. BKD2014LG00120’ issued on June 10, 2014, and addressed to Ministry of Energy and Mineral Development and signed by Zhang Dajin on behalf of Exim Bank Head office, the bank agrees to cover Sinohydro Corporation, Karuma Dam contractors with a guarantee.
 

Sinohydro Corporation has already committed its own funds for the ongoing construction works at the project site ahead of the release of funding by the government of Uganda.
 

Last month the Chairman and President of Exim Bank of China Mr. Li Ruogu was in Uganda to meet President to confirm and present details of the project funding.
 

Sources within Ministry of Energy and Mineral Development have confirmed that a delegation of government officials from the two Ministries of Energy and Finance led by Ministers Maria Kiwanuka and Irene Muloni and including their Permanent Secretaries, Keith Muhakanizi and Kabagambe Kalisa respectively are in China to discuss the release of the balance of the 85% expected to be concluded by the end of this month.

Total cost of construction of Karuma dam and power plant is estimated to cost approximately US$ 1.7 billion. That figure includes the cost needed to build a transmission line from Karuma to a location where the power will be integrated into the national power grid.
 

Last year, Finance Minister Maria Kiwanuka said 85% of the funding will come from the Exim Bank of China while Uganda government will provide 15% of the funding adding that the concession loan from China will be repaid in the next five years.
 

The project currently being undertaken by Sino Hydro Corp Ltd from China is expected to provide much needed relief to fast growing economy whose energy needs are outstripping production.
 

Sinohydro Corporation Chief Representative Mr. Deng Xiaoguan said in a recent report that construction of the dam is in full force and the release of the necessary funding will go a long way to enhance progress.


Also related to this story

China Exim Bank to fund more projects in Uganda

Museveni, EXIM Bank chief meet over infrastructure development

Karuma works start ahead of financial deal

Work on Karuma hydro power project on track

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Gov’t to enact law against SACCOs money theft
Government is in the process of enacting a law that that will punish those found guilty of stealing people’s savings through the Savings and Credit Schemes (SACCOS)....
Japan MPs set out to promote Uganda’s tourism
Legislators from the Japanese parliament are to promote Uganda as a tourist destination in the East African region, as revealed by two Japanese MPs....
Fresh row hits $8bn railway deal
Fresh controversy is stalking the over $8b Standard Gauge Railway deal, with the company that lost the deal seeking audience with the President....
BATU ends tobacco leaf business
British American Tobacco Uganda (BATU) will discontinue its leaf growing and export business after 86 years with a new player set to enter the market at the end of the year....
Police close illegal micro finance; over sh20m in savings lost
Police in Njeru Town Council has closed an illegal micro finance bank over defrauding unsuspecting members of the public over sh20m...
More oil resources found in Albert region
The Petroleum Exploration and Production Department has said that the oil resource confirmed is now 6.5 billion barrels from the fields studied....
Do you think banning the sale of single cigarette sticks will help regulate tobacco production?
yes
No
Can't Say
follow us
subscribe to our news letter