Uganda’s Energy Ministry has expressed dissatisfaction in the implementation of the $5 billion Ayago hydropower project. The Minister of Energy, Ruth Nankabirwa has shown her discontent with the delays, suggesting that the government seeks a new investor. Once completed, the project is anticipated to produce 840 MW of electricity annually. It was awarded to Bridging Foundation, which promised a $5 billion investment.
One half of the investment ($2.5 billion) was to be designated for energy. On the other hand, the other half was to facilitate implementation in other areas. Nankabirwa noted that the government has given the Foundation 365 days under certain conditions. “I am not pleased with the pace at which Bridging Foundation is moving forward,” she said. Moreover, she noted that she has informed the president to consider other viable investors. With a planned capacity of 840 MW, the Ayago project is expected to be a significant energy hub in the country.
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Project Summary
Location: Uganda
Capacity: 840 MW
Significance: Increase electricity generation in Uganda
Cost of Project: US$5 Billion
The Significance of the Ayago Hydropower Project
Situated on the Nile, the Ayago hydropower project is expected to play a crucial role in the national energy agenda. Furthermore, it is expected to deliver a sustainable energy source to aid the nation’s economic development. Nankabirwa also disclosed government intentions to enhance power consumption and attract new energy project investments. These includes the 392 MW Oriang Dam and the exploration of geothermal and nuclear energy.
Speaking during the Uganda Electricity Generation Company Limited annual general meeting in Kampala, she highlighted the government’s dedication. Moreover, her speech highlighted the dedication the government had in diversifying electricity generation in the country. She also mentioned that feasibility studies for solar power initiatives are in progress. Some include the 150 MW plant in Buliisa and a 100 MW project in Masindi. Geothermal energy has also identified a potential capacity of 1,500 MW, generating interest from the private sector.
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