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
82 Ugandan companies enter EAC market
Eighty-two new small to medium Ugandan companies have managed to break into the East African market since 2009, according to the Uganda Exports Promotions Board (UEPB)....
Merck buys rights to NewLink
US drugmaker Merck has bought the rights to an experimental Ebola vaccine being developed by NewLink Genetics, the companies have said....
MTN tops most admired, valuable African Brand
MTN has again topped the Brand Africa 100® list as the most admired and most valuable African Brand. At over $5.4b, MTN is the only African brand valued over a billion dollars....
17 business personalities awarded American honorary doctorates
A group of 17 personalities with footprints in business and humanitarian circles, have been awarded honorary philosophy doctorates in humanities by an American institution, for positive transformation of society....
Egypt to offer projects to domestic, foreign investors
Egypt will offer a slew of projects to domestic and foreign investors at a conference in March aimed at kick-starting an economy battered by years of political unrest....
Students’ involvement in investment negotiations is key
University students have been urged to get involved in negotiations of trade, bilateral and investment agreements rather than leaving it to technocrats and politicians....
Should Govt lease parts of Lake Victoria to private developers?
Its Ok
No Way
Not Sure
follow us
subscribe to our news letter