$2.6m For Power Plants

Dec 12, 2003

UGANDA government officials are holding discussions with donors in order to get financial support to construct mini- hydro electric power plants.

By David Muwanga
UGANDA government officials are holding discussions with donors in order to get financial support to construct mini- hydro electric power plants.
The plants, to be constructed in Moyo, Adjumani and Kamuli districts, are meant to enable small and medium scale entrepreneurs to start using electricity.
“We are still holding discussions with donors that include the Swedish International Development Agency (SIDA), Norwegian Agency for Development (NORAD) from whom we expect to get $ 0.6m and a line of credit totaling $2m from the Islamic Development Bank (IDB),” a source with the United Nations Industrial Development Organization (UNIDO) told The New Vision on Wednesday in Kampala.
The source said the negotiations for getting the line of credits and grants from donors is part of the UNIDO phase two that aims at supporting the governments strategy of accessing energy to rural areas through the rural energy fund.
“This is part of UNIDO’s rural energy initiative aimed at improving and increasing production by small and medium entrepreneurs. It was launched during the summit on sustainable energy that was held in Johannesburg last August.
President Yoweri Museveni and the Director General of UNIDO Carlos Magarinos signed the UNIDO phase two last week in Vienna, Austria.
Minister of Tourism, Trade and Industry Prof. Edward Rugumayo and Uganda Investment Authority (UIA) Executive Director Dr. Maggie Kigozi also attended the signing .
“We plan to construct small hydro power stations that would produce energy for the small and medium enterprises that are involved in projects like food processing, fisheries and lime production among others,” the source said.
The source said that Moyo and Adjumani will get the small hydro power stations while in Kamuli, an information, communication and technology centre will be set up.Ends

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