The 840-megawatt Ayago Hydropower Project, set to be Uganda’s largest hydroelectric power station upon completion, remains in its pre-construction phase as the Ugandan government seeks new international investors. Located along the Victoria Nile in Nwoya District within Murchison Falls National Park, the estimated $5 billion project is designed as an underground run-of-river facility split into two phases: Ayago North (450 MW) and Ayago South (390 MW). Designed to utilize twelve 70 MW Francis turbines under the oversight of the Uganda Electricity Generation Company Limited (UEGCL), the development aims to address long-term domestic energy demands and facilitate regional electricity exports to neighboring countries. This project comes in as East African nations gear up their hydropower capacity, with Tanzania leading the race following the inauguration of the Julius Nyerere Hydropower Project.
Progress on the mega-project has experienced significant delays, prompting Uganda’s Ministry of Energy to active re-engagement with potential development partners. The project was previously tied to proposed deals with international conglomerates, including Chinese engineering firms and later a $5 billion commitment from the BRIDGIN Foundation. However, due to unmet performance milestones and slow implementation progress, Energy Minister Ruth Nankabirwa issued a 365-day conditional deadline for the foundation while simultaneously notifying President Yoweri Museveni of the need to search for alternative financiers. The government remains focused on securing reliable financial and technical partners to bring the strategic power hub to fruition.
March 12, 2025
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. Also read: More hydro power stations in Uganda to be constructed
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.
Project Factsheet
Project Name: Ayago Hydropower Station (Ayago Hydroelectric Power Project)
Country and Region: Uganda, Northern Region (Acholi sub-region)
Location: Nwoya District, on the Victoria Nile within Murchison Falls National Park
Project Status: Pre-construction / Proposed (Actively seeking investors)
Primary Developer / Authority: Uganda Electricity Generation Company Limited (UEGCL)
Technical Specifications
- Total Installed Capacity: 840 Megawatts (MW)
Phased Layout:
- Ayago North: 450 MW
- Ayago South: 390 MW
Plant Type: Underground run-of-river facility
Turbines: 12 Francis turbines with a nameplate capacity of 70 MW each
Gross Head: 80 meters
Financial and Strategic Parameters
- Estimated Cost: $5 Billion USD
- Regional Grid Integration: Eastern Africa Power Pool (EAPP)
- Target Export Markets: Kenya, Rwanda, South Sudan
- Primary Strategic Goal: Expand base-load electricity, support energy-intensive industries, and establish Uganda as a regional power exporter.
Project Team
Current Authorities and Project Owners
- Uganda Electricity Generation Company Limited (UEGCL): State-owned primary developer, project owner, and asset manager responsible for project oversight.
- Ministry of Energy and Mineral Development (MEMD): Ugandan government ministry leading investor procurement, international fundraising, and policy oversight.
- Electricity Regulatory Authority (ERA): National regulatory body responsible for licensing, tariffs, and approving developer applications.
Proposed and Historical Private Partners / Investors
- BRIDGIN Foundation: International NGO/financing entity granted a preliminary agreement in 2022 to mobilize $5B for the project; project funding was conditionally reviewed and opened to other investors due to slow implementation.
- Power Construction Corporation of China (PowerChina): Chinese state-owned engineering group that formally applied in 2020 to design, finance, construct, operate, and maintain the facility under a build-operate-transfer model.
- China Gezhouba Group Corporation (CGGC): Assigned EPC (Engineering, Procurement, and Construction) rights in 2013 and commissioned initial Environmental and Social Impact Assessments (ESIA).
- Mapa Construction and Trading Company: Turkish infrastructure contractor originally awarded the $1.9B construction deal in April 2013 before the decision was rescinded later that year.
Technical Consultancy & Initial Development Partners
- Japan International Cooperation Agency (JICA): Japanese development agency that funded and executed comprehensive pre-feasibility, technical planning, and preliminary environmental studies.
- Bharat Heavy Electricals Limited (BHEL): Indian state-owned engineering enterprise that completed early technical and financial capacity assessments in 2007.
- WSS Services Uganda Ltd: National environmental consultancy firm contracted by CGGC to conduct local baseline environmental and social impact studies.
Also read: Uganda to build US $1.4bn hydropower plant on the Nile Why Uganda is the next energy investment destination
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