According to a top diplomat on Monday, the European Union is to invest 60 million euros ($63 million) in modernising one of Uganda’s biggest hydropower facilities, helping to partially close a financial gap for the nation’s ageing energy infrastructure.
Established in 1954, the Nalubaale and Kiira hydroelectric plant complex is Uganda’s oldest power station, producing around 380 megawatts (MW). It is situated at the Nile’s source in Jinja in the east of the country.
The facility was operated under a 20-year concession by the massive South African power company Eskom, which terminated early this year and was later taken back over by the government.
“We’ll be investing some 60 million euros … in the rehabilitation of Kiira and Nalubaale hydropower plant in order to provide reliable energy for Uganda’s industrialisation,” said Jan Sadek, the ambassador of the European Union to Uganda.
He did not specify if the cash would come from a grant or credit, or when the works would start.
According to Sadek, the financing would be provided under the EU’s global gateways strategy, which aims to contribute to achieving the Sustainable Development Goals of the UN by 2030.
Due to underfunding and the ageing of various network components, Uganda’s electricity infrastructure has experienced frequent outages and occasionally malfunctions.
Uganda now has an installed capacity of 1,400 MW, primarily from its hydro dams. This year, the Chinese-built Karuma plant, which is located on the River Nile, will be put into service, increasing Uganda’s power output to 2000 MW.
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