Govt to borrow Shs283b for dam

Friday May 22 2015

By Stephen Kafeero


Government is set to borrow 85 million Euros (about Shs 283.3b) from two European development agencies to construct the 44.7 Megawatt Muzizi Dam after Cabinet approved the proposal to borrow the funds.

The minister of Information and National Guidance, Mr Jim Muhwezi, made the announcement yesterday while briefing the media on the decisions of Cabinet which sat on Wednesday.

The money, which will be borrowed from French Agency for Development (and the German Development Bank Kreditanstalt Fur Wiederaufbau, will also finance the associated transmission line.

Mr Muhwezi said the construction of the dams was in line with Uganda’s National Development Plan (NDP).

“Among the interventions required to achieve the NDP strategy of developing mini hydro-power plants to generate 150 MW is construction of Muzizi, Kikagati, Nshongyenzi, Waki and other mini-hydro power projects. Feasibility studies for Muzizi 44.7MW have been completed and the next phase is construction,” he said.

Cabinet also approved the appointment of eight people to sit on the board of trustees for the Uganda National Cultural Centre.

They include Dr Micheal Odong (chairperson), Mr Sam Okello kelo, Mr Kiyimba Musisi , Mr Usher Wilson Owere, Ms Juliet Kyobutungi, Ms Cissy Mbabazi, Mr Edson Ngirabakunzi and Ms Naumo Juliana Kuruhiira, who are all members.

Other dam projects

Government has already borrowed funds for the construction of a number of dams, including the construction of Karuma, which is expected to cost$1.4b (Shs 3.5trillion) and $280 million (Shs700 billion) for the transmission lines with EXIM Bank footing 85 per cent of the funding.