Uganda officially launched its largest power plant on Thursday, a 600 MW facility on the River Nile costing $1.7 billion, funded through a Chinese loan. Built by Sinohydro Corporation, the Karuma Hydropower Project significantly boosts Uganda’s energy capacity to over 2000 MW.
The plant’s construction, which began in 2013, faced years of delays and missed deadlines.
During the commissioning event in Kiryandogo, China’s Ambassador Zhang Lizhong hailed the project as a “flagship of China-Uganda cooperation,” emphasising its role in delivering affordable electricity and promoting sustainable clean energy for the region.
Uganda currently exports power to Rwanda, Tanzania, and Kenya, and a 400 kV transmission line extending 248 kilometers was also inaugurated.
Uganda is planning a $180 million transmission line to facilitate electricity exports to South Sudan, which is facing severe energy shortages.
Energy Minister Ruth Nankabirwa noted that logistical hurdles, including delays caused by COVID-19, slowed the plant’s completion.
The project was primarily funded by a $1.4 billion loan from China’s Exim Bank, covering 85% of the total cost, with the Ugandan government contributing the remainder.
President Yoweri Museveni emphasized his government’s commitment to providing “cheap, reliable, affordable electricity.”
The Karuma plant is the second major hydropower project financed by China in Uganda in recent years.
Uganda inaugurated the 188 MW Isimba hydropower dam in 2019, a $500 million project situated on the Nile and funded by a loan from China. The dam was constructed by China International Water and Electric Corporation (CWE).
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