Isimba Ugandan Hydropower Dam Second Chinese Power Launch in Two Months

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--China's International Water & Electric Corporation (CWEC) has signed a memorandum of understanding with the Ugandan government to construct the 188-megawatt (MW) hydropower dam on the River Nile. The dam project is being funded through a bilateral arrangement in which the Chinese government and China's Exim Bank will cover the dam's $350 million cost out of a $570 million loan facility.

Uganda's Energy Ministry said that a full contract for the project was expected to be concluded by the end of September, and the announcement follows the signing by Uganda of a contract with China's SinoHydro Group for the 600-MW, $1.65 billion Karuma hydropower project, also on the Nile. When completed, the Isimba project will be the fourth-largest in the country.

Isimba will be connected by a 132-kilovolt (kV) power transmission line to the 250-MW Bujagali hydropower dam, which is 40 kilometers upstream.

Local area inhabitants who are affected by the construction of the dam will receive a compensation package of $10,000 per household. They will be given three months to leave the site after receiving their compensation packages.

For related information, see July 3, 2013, article - Uganda's Karuma Hydro Project Clears Funding, Legal Hurdles.

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