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Discussion Starter · #1 ·
Uganda's President Yoweri Museveni has launched the construction of a new dam on the White Nile. The Karuma Hydropower dam will cost US$1.4billion and will be constructed by the Chinese company, Sinohydro Corporation.

The dam is expected to produce 600MW for Uganda's national grid. Speaking on the occasion, President Museveni praised the Chinese for having the technical expertise and money to fund infrastructural projects. He also said the finance was provided on favourable terms.

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So that must be doubling or something the current output? If I remember right Uganda produces very little.
Our current demand is 500MW and our distributed power is about 530 MW so we have a marginal surplus although our generation capacity is 800MW the difference is a sign of the high transmission losses in the country which is at about 25% of all power generated.

Although there are 2 more dams planned 1 of 600MW and the other of 188MW which will start soon likely in months all also using cheap chinese loans and chinese companies.

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The Government has cleared a Chinese firm to start construction of the 188 megawatt (MW) Isimba Hydropower dam.

China International Water & Electric Corporation (CWEC) signed a memorandum of understanding with the Government last week.

The energy ministry’s assistant commissioner for electric power, Eng. Henry Bidasala, said the preparations for signing a contract with the firm were ongoing, adding that the process would be concluded by the end of next month.

The Chinese government will finance the project with a $570m (sh1.4trillion) loan.

Through a bilateral arrangement, the Chinese government and the EXIM Bank, will provide the funds.

“We have submitted our assessment of the land and assets in the area to the chief government valuer, after which we shall start paying the residents,” Bidasala said.

The project will enable at least 350 households to access electricity. Preliminary estimates show that each affected household will receive a package of $10,000 (about sh25m). According to Bidasala-Igaga, the residents will be given a three-month period to leave the project site after receiving their packages.

Upon completion, Isimba hydropower dam will be the fourth largest hydropower project in Uganda, after the 250MW Bujagali power project that was switched on last year, the 600MW Karuma dam and the 600MW Ayago power station.

The proposed plan indicates that Isimba will be located 40km downstream from Bujagali dam.

The hydropower project also includes the construction of a 132 MKV power transmission line connecting to Bujagali.

Lin Renwei, the CWEC country representative, said the hydropower project would be produced at 68 cents per kilowatt hour, considered the lowest in East Africa.

The extension of power to more areas is expected to be boosted by smaller renewable hydropower projects that will deliver a total of 68.5 MW to the national grid.

They include Buseruka (9MW), Nyagak I (3.5MW), Kisizi (0.26MW), Bugoye (13MW), Mpanga (18MW), and Ishasha (6.5MW).

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Ayago power project (Uganda) 'snatched' from Turks
Ayago power project (Uganda) 'snatched' from Turks

By, Nelson Wesonga
15 August 2013, Daily Monitor

KAMPALA- The [Ugandan] government has reallocated the $1.9 billion
(Shs4.9 trillion) 600MW Ayago Hydropower Project from a Turkish company
to China Gezhouba Group.

The deal, which is said not to have gone through competitive bidding,
restricted or otherwise, is $210 million more than what Sinohydro
Corporation will get for the 600MW Karuma HPP. The reallocation comes
against the backdrop of Japan's International Cooperation Agency (JICA)
pulling out of studies that would have helped establish the feasibility
of Ayago HPP.

According to a source, the government's decision to hand Ayago HPP to
China Gezhouba Group was taken after the government's trump card to get
the Japanese to fund the project backfired
.The government had in April
upped the ante by 'awarding' the Ayago HPP engineering procurement and
construction (EPC) contract to Mapa Construction, a Turkish company.

That did not impress the Japanese who had already sunk about $2 million
(Shs5.2 billion) in Ayago's feasibility studies. It is then that the
Japanese decided to pull out. The ministry of Energy claimed that the
Japanese had pulled out of the study "due to the perceived adverse
environmental impacts" that could manifest themselves once the project
kicks off.
A document seen by this newspaper indicates that the $1.9
billion project along River Ayago, and straddles the Murchison Falls
National Park, would affect the daytime habitat of the hippopotami

It remains unclear how the government plans to reassure other potential
investors in the energy sector that what happened to the Japanese and
the Turks will not happen to them.

Meanwhile, the government handed China International Water and Electric
Corporation (CWE), which the Inspectorate of Government faulted for
falsifying its portfolio, the $535 million (Shs1.3 trillion) 188MW
Isimba HPP.

CWE had claimed it constructed a 600MW dam so that it could meet the
benchmarks for Karuma.In June, the company asked for "a lead role" in
the construction of Karuma, claiming that Sinohydro had copied CWE's
construction blueprint. We could not independently verify CWE's claim
with Sinohydro.

In the same month, CWE petitioned the East African Court of Justice
(EACJ) to compel Uganda to follow procurement laws in sourcing for an
EPC for Karuma. The court is yet to decide on the issue.

This is International Rivers' mailing list on China's global footprint, and particularly Chinese investment in international dam projects.

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The water crises is on rise African states as in past these states face serious droughts. The droughts can only be finished through constructing small canals and dams. The Chinese company has started the karuma hydropower dam on river white Nile. These dams will start the new era of progress and development in the African region.
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