Isimba works progressing well

Construction of the 183MW Isimba power dam project is making good progress.

Jiang Shouguo, the project manager of Isimba hydro power project and vice president of China International Water and Electric Corporation (CWE), the contracting firm, has said high standards are being maintained during the construction of the dam.

"All the stakeholders have made a lot of efforts in early preparation despite a few delays," noted Shouguo.

Completion of the the Isimba project is expected to boost the country's industrialisation agenda. Currently less than 20% of the country's energy needs have been met.

Elly Karuhanga, the chairman of the energy and extractives lobby group, Uganda Chamber of Mines and Petroleum (UCMP), says they are satisfied with the progress of works at Isimba and its completion will transform the country.

"If that power is unleashed on the Uganda businesses and tariffs are reduced, it will have a massive impact, the landscape will change," noted Karuhanga.

Located 50km downstream of Lake Victoria, in Kamuli District, the project will also include the construction of transmission lines from Kayunga.

On funding, 15% of the total $568m financing is coming from government while 85% is a concessional loan from China Exim bank.

Isimba project is one of many projects government is pushing to raise Uganda's electricity generation capacity from 852 Megawatts to 2,000MW by 2020.

Among the other projects are the 600MW Karuma Hydro Power Project and Ayago (600MW).

It is expected that once the generation capacity rises to the target, the cost of generating electricity would reduce from $0.10 to $0.05 per unit.