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

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

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Kenya, Uganda to harmonize clearing operations
KENYA and Uganda clearing agents have pledged to deepen partnership with the aim of facilitating faster movement of cargo across the region...
Online sales dominate
FRENZIED crowds failed to materialise at shops in Britain for "Black Friday" sales...
MDIs urged to embrace best financial reporting practices
Microfinance institutions have been urged to improve on their financial reporting procedures and embrace best practices for more rate of turn over...
LG president jets in from South Korea
The president and CEO of the LG Mobile Communication Company Juno Cho has jetted into Uganda for the first time to assess how the business is doing....
Government has embarked on the process of licensing warehouses across the country to improve quality of grains especially maize in Uganda....
Gov’t told review social protection policy
GOVERNMENT has been asked to review the Social Protection Policy to include vulnerable groups like the youth in agriculture production who lack financial support...
Is Uganda ready for the pope's visit?
Can't Say
follow us
subscribe to our news letter