Uganda invites bids for construction of new power plant

KAMPALA, UGANDA - The Ugandan government has started the biding process for the construction of a new hydro power station aimed at containing the country's escalating electricity crisis, local media reported recently.

Permanent Secretary of the Ministry of Energy Kabagambe-Kalisa in a procurement notice invited firms to bid for the development of Karuma hydropower plant to be located about 3 km upstream of the Karuma Bridge along River Nile in northern Uganda, New Vision reported.

According to the ministry, the power plant which will have a capacity of up to 250 MW will be constructed as a run-of-river scheme with no regulation on the river flow.

Transmission lines will be constructed to evacuate power from the plant to the Kawanda substation near Kampala and at the new substation at Olwinyo.

The project scheduled to be completed in four years requires the designing of the plant and transmission lines, reviewing and updating the Environmental Impact Assessment (EIA) and resettlement action plan (RAP) and legal services in the power purchase agreement negotiations.

A Norwegian firm, Norpak Power, has already held a permit to develop the site and has already carried out EIA and RAP feasibility studies.

Kalisa however said the private sector should partner with government in the development of the project.

Uganda is currently facing a major electricity crisis which is stifling the country's economic growth. The current hydropower generation at Owen Falls Dam complex has dwindled to 120 MW from the installed capacity of 380 MW due to prolonged drought.

The shortfall has been worsened by the increase of electricity demand of up to 28 MW annually.

The construction of Karuma hydropower plant is one of the medium term measures put up by the government to contain the crisis. In the short term, the country is relying on the expensive thermal power.