President Yoweri Kaguta Museveni and his counterpart Samia Suluhu Hassan have commissioned the Kikagati-Murongo Hydropower Plant. The 16MW plant was launched earlier today in Isingiro district.
With funding from the Netherlands Development Finance Corporation (FMO), Africa Renewable Energy Fund, Emerging Africa Infrastructure Fund (EAIF) and Private Infrastructure Development Group (PIDG), the construction commenced in February 2018.
Initially, the Chinese company China Shan Sheng, was licensed to carry out the project in 2008. At that time, construction costs were estimated at $25 million. Between 2008 and 2013, the Chinese pulled out of the projects. The development rights were taken up by TrønderEnergi, a Norwegian power company, with a Ugandan subsidiary Tronder Energy Limited.
SBI International AG was awarded the construction contract. The construction cost was reported at $50 million, in 2018.
Speaking during the launch, Suluhu said Tanzania and Uganda’s historical and fraternal relations continue to improve day by day. Power generated is going to improve a number of aspects in this region, including business, communication and social engagements
“If Tanzania wants all the 16MW from Kikagati, they should take it all, for as long as they can pay for it. I have no problem whatsoever with exporting our electricity to the neighbours that they want to pay for it,” Museveni said.
He said the price of $8.5 cents per KWh should not be a Christian idea. “We should be thinking about bringing it down, especially for our manufacturers. We need to be providing cheaper electricity for our people. The developers and their financiers need to consider. There is no way we can have expensive electricity and then you want us to get out of poverty.” Museveni said.
