
European Union delegates tour the Nalubaale Kiira hydropower station during their visit to Jinja district last month. PHOTO/RACHEAL NABISUBI
The Nalubaale-Kiira power complex, currently supplying close to 70 percent of the country's electrical energy is set to undergo rehabilitation, giving it another 30 years.
Government and some European Union donors seem to have elected this position despite whispers from a section of financiers who appear to query the rationale for rehabilitation as opposed to building new dams.
For the government, it is all about rehabilitation. And here is why.
“Nalubaale Kiira Hydro Power station’s need for rehabilitation is driven by several deficiencies ranging from structural to infrastructure and reduced operational capacity,” says Eng. Harrison Mutikanga, the executive director, Uganda Electricity Generation Company Limited (UEGCL).
He continues: “There is a lot of uncertainty in climate change but when I saw the terms of reference; one of the objectives after rehabilitation is to ensure that Nalubaale - Kiira will become climate resilient.”
According to the generation manager, Nalubaale - Kiira Hydro Power Stations, Eng. Daniel Oluga, this is “very good news because at least we know that the plant will be able to withstand the climate changes.”
This is not the first rehabilitation. In the 1990s, some rehabilitation and upgrading was implemented; increasing installed capacity to 180MW (10x18MW).

A woman takes a photo of the water spilling at Nalubaale Kiira dam in Jinja. PHOTO BY TAUSI NAKATO
A decade later, Kiira Power Station/ Owen Falls Extension, located 1 km from NPS was opened by President Yoweri Kaguta Museveni specifically on May 19, 2000 after spending a total cost including associated transmission lines of $230 million. NPS therefore was commissioned over a seven year period from 2000 to 2007 with a total installed capacity of 200MW (5x40MW).
Importantly, over the planned rehabilitation, according to head of communications, Mr Enock Kusasira, there will be no impact on the other dams, considering that Uganda is one of the most active countries in Africa for hydropower development.
“There is no moment when the plants will stop running," he said in an email last week, adding: “The rehabilitation will not affect power supply and generation since the plant will be running, apart from incase of emergency.”
History and trajectory
Nalubaale Power Station (NPS) is a historical facility, opened by Queen Elizabeth II on 29th April 1954 as Owen Falls Dam. Construction of the power station started in 1948, costing £21 million. It was commissioned in phases -- over a 14-year period from 1954 to 1968 with a total installed capacity of 150MW (10x15MW).
As of the second quarter of 2024, Uganda's installed electricity capacity is 2,048.1 megawatts (MW). The majority of this capacity comes from renewable energy sources, with hydroelectricity accounting for 84 percent.
Electricity sector regulator report indicates that Uganda’s installed capacity has remained on an upward trend for more than a decade. This is due to the commissioning of various renewable energy projects, mainly hydro generation projects.
“In the last five years, we note the commissioning of Isimba 183MW and Karuma 600 MW Hydro Power plants. By the end of Q2 2024, Uganda’s installed capacity had reached 2,048.1 MW, a 63.7 percent increase from 1,251 MW in 2019,” reads the sector report in part.
Current plant status
The current status of Nalubaale-Kiira status is in dire need of rehabilitation. The first crack was detected in 1964 - 10 years after commissioning. But due to instability in most parts of the 1970s it was not possible to have designer’s engineers come to inspect the station.
The crack on Nalubaale power station was as a result of Alkali Silicate Reaction (ARS) which is a reaction that produces a gel that absorbs water, causing the concrete to expand and crack. In simple terms, this reaction is a major cause of concrete's gradual but severe deterioration as evident over the years. After full investigations, rehabilitation has been recommended as a way to stretch the life of Nalubaale-Kiira power dams for another 30 years.
According to Eng Oluga, rehabilitation means the two plants - Nalubaale-Kiira should maintain their current capacity and carry out upgrades, remediation, and replacements of the electrical, mechanical, and civil structures.
Currently, procurement for consultants is on-going. The Constructability Study and Environmental and Social Impact Assessment (ESIA) are set to commence in December 2024 and January 2025 respectively, according to Engineer Oluga.
The negotiation French Development Agency (AFD) Credit Facility Agreement between the government and financier commenced in September 2024 and is still ongoing.
If all goes as planned, works should commence in 2026 with the total cost estimated at 170 million Euros.
Support
Last month, the EU Heads of Mission in Uganda during a visit to part of Busoga region for the ground assessment of ongoing projects and development cooperation with Uganda, the EU Ambassadors engaged with not only local authorities, the youth, women and private sector actors, but also paid a visit to Kiira Motors and Nalubaale-Kiira Hydropower Dams.
While there, Ambassador Jan Sadek, the head of the EU Delegation to Uganda, said EU is committed to becoming the first climate-neutral continent by 2050 as outlined in the European Green Deal which seeks to transform the EU into a modern, resource-efficient and competitive economy, ensuring among other things no net emissions of greenhouse gases by 2050.
In line with its commitment, the EU support of the rehabilitation and modernisation of NKHPP complex is a concrete example of the EU’s efforts to promote sustainable energy solutions in partner countries.
“By supporting hydropower as a renewable source that can help reduce reliance on fossil fuels and reduce greenhouse gas emissions. We aim to contribute to Uganda’s transition to a low-carbon economy and help achieve our shared climate goal including objectives of the Paris agreement.
“The NKHPP complex is a critical element of Uganda’s energy system providing green reliable electricity at the lowest cost. There is a need to invest in the rehabilitation and modernisation cost of the infrastructure to ensure that it can continue its operations in the decades to come and to continue fulfilling its role in contributing to Uganda’ energy objectives,” says Amb. Sadek.

A man looks at the Nalubale Kiira dam. PHOTO BY TAUSI NAKATO
He continued: “Team EU pledged support to continue supporting the course. We will give a combined funding of over 170 million Euros [Shs760 billion]. About 30 million Euros [Shs116.5 billion] will be a grant from the EU. There will be favourable loans from the European Investment Bank and the AFD of about 75 million Euros and then 65 million Euros respectively, amounting to 170 million Euros.”
These loans are currently under preparation.He further revealed that the object of the support is to allow the extension of the lifetime of the NKHPP and ensure the provision of affordable electricity for Ugandans from the dam and stabilse the national grid. The loan agreement is yet to be completed.
The 30 million Euro grant allows favourable loan conditions to be provided. The investment is aimed at reducing green gas emission.
Government’s hand
Minister of Energy and Mineral Development, Ms Ruth Nankabirwa in an interview told Prosper Magazine, “We have zeroed on rehabilitation and so far it is the course we are pursuing and our partners and financiers are onboard with this.”
The reason for this is to enhance the capacity of Nalubaale-Kiira.
She said: “We wanted to enhance the capacity of Nalubaale-Kiira power stations so that the plant can generate more than 380 MW. But we shall begin with rehabilitating this plant even if it will continue generating the same capacity. I am sure we shall have a phase where we can have the opportunity to generate more.”