Kakira commits $43m for power

May 24, 2005

AS Uganda struggles to overcome the ever escalating power demand caused by the expanding industrial base, Madhvani Group of Companies has committed $43m (sh76b) for power co-generation.

By Abubaker Mukose

AS Uganda struggles to overcome the ever escalating power demand caused by the expanding industrial base, Madhvani Group of Companies has committed $43m (sh76b) for power co-generation.

A joint managing director, Mayur Madhvani, said they are looking at possibilities of generating 20MW.
The co-generation unit utilises bagasse (by- product of sugar) to generate steam, which drives alternators that generate electricity.

Madhvani said the project, under Kakira Sugar Works (KSW), would commission a 16MW turbine, which will be driven by two high efficiency turbo alternators. He said this would be done in the second half of 2006.

Despite Kakira’s generation potential, the Government is not willing to purchase the unit’s entire capacity. The power purchase agreement signed between the energy ministry and Kakira permits the company to supply 6MW to the national grid for six hours a day.

Madhvani wants the energy ministry to buy the unit’s full capacity for 24 hours instead of the 6MW. KSW generates 7.5MW, which meet all its electrical needs.

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