Bujagali power cost set for reduction

Bujagali hydro power station

What you need to know:

  • The other highlight of the 2017/2018 Budget speech was the rehabilitation of the Tororo–Pakwach Railway Metre Gauge line to support delivery of equipment for Oil production and the allocation of Shs81.8 billion ‘to continue implementation of several power projects’.
  • Mr Kasaija did not name the projects, but said the government would “soon” grant more oil production licences to oil companies.

Kampala. Uganda’s large manufacturers will in October get to know by how much the electricity tariff they pay will be reduced.
That is when the African Development Bank (AfDB), which the government had engaged early this year to refinance Bujagali hydropower plant’s construction loan, is expected to hand in its report.
Refinancing the plant is one of the many measures the government has undertaken to reduce Bujagali’s power generation tariff, which stands at $13 cents (Shs467) per unit, to $5 cents (Shs179) per unit.
“The latest information from AfDB is that the refinancing arrangements should be completed by October 2017,” Finance minister Matia Kasaija said while reading the Financial Year 2017/2018 Budget in Kampala on Thursday.

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