National grid to get 200MW boost
Dec 07, 2010
TAQA Arabia, an Egyptian firm, has signed a $1b, deal with Chui, a local firm to develop hydropower projects in Uganda.
By David Mugabe
TAQA Arabia, an Egyptian firm, has signed a $1b, deal with Chui, a local firm to develop hydropower projects in Uganda.
Taqa Power Africa, a partnership between Taqa Arabia, a subsidiary of Citadel Capital and Chui, owned by businessman Charles Mbire, will design, construct, operate and maintain small-and-medium size power plants that will add about 200MW to the power grid in the next five years.
However, Taqa Power has not yet identified the sites for the projects, nor received operating licences.
If the projects take off, it will be a huge relief to the country’s electricity burden that is one of worst competitive bottlenecks.
Chui will own 30% in the partnership and Taqa 70%.
Mbire also owns a stake in the RVR railway concession alongside Citadel and TransCentury of Kenya.
Chui and Taqa Arabia will fork out $350m in equity, while the rest of the funds will be sourced from international funding agencies.
Dr. Magdy Saleh, the Taqa chairman, said in the next six months, they will embark on a business plan, defining the investment, technical and the financial implications of the projects set to begin in late 2011.
Within this period, he added, the company will also summon its shareholders to underline the financial responsibility of each partner.
“We have agreed to come together as a first move for the Egyptian-Uganda partnership. This energy sector is very important for this economy and region. Please take advantage of this first initiative,†Mbire told over 30 Egyptian investors at the Kampala Serena Hotel on Monday.
Energy minister Hillary Onek said Uganda needed to learn from Egypt’s experience of rural electrification. Egypt’s rural power grid connects up to 99.1% of the country, while only about 11% of Uganda’s population accesses electricity.
Onek said the Government’s plan was to generate 3,800MW in the next five years, from only 550MW today.
TAQA Arabia, an Egyptian firm, has signed a $1b, deal with Chui, a local firm to develop hydropower projects in Uganda.
Taqa Power Africa, a partnership between Taqa Arabia, a subsidiary of Citadel Capital and Chui, owned by businessman Charles Mbire, will design, construct, operate and maintain small-and-medium size power plants that will add about 200MW to the power grid in the next five years.
However, Taqa Power has not yet identified the sites for the projects, nor received operating licences.
If the projects take off, it will be a huge relief to the country’s electricity burden that is one of worst competitive bottlenecks.
Chui will own 30% in the partnership and Taqa 70%.
Mbire also owns a stake in the RVR railway concession alongside Citadel and TransCentury of Kenya.
Chui and Taqa Arabia will fork out $350m in equity, while the rest of the funds will be sourced from international funding agencies.
Dr. Magdy Saleh, the Taqa chairman, said in the next six months, they will embark on a business plan, defining the investment, technical and the financial implications of the projects set to begin in late 2011.
Within this period, he added, the company will also summon its shareholders to underline the financial responsibility of each partner.
“We have agreed to come together as a first move for the Egyptian-Uganda partnership. This energy sector is very important for this economy and region. Please take advantage of this first initiative,†Mbire told over 30 Egyptian investors at the Kampala Serena Hotel on Monday.
Energy minister Hillary Onek said Uganda needed to learn from Egypt’s experience of rural electrification. Egypt’s rural power grid connects up to 99.1% of the country, while only about 11% of Uganda’s population accesses electricity.
Onek said the Government’s plan was to generate 3,800MW in the next five years, from only 550MW today.