On July 25, 2024, the Uganda Energy Credit Capitalisation Company (UECCC) celebrated a major milestone in rural electrification by signing the Electromechanical Works Contract for the ORIO mini hydropower project at its headquarters. The ceremony was attended by distinguished guests, including Mr. Joost van Ettro, Acting Ambassador of the Royal Kingdom of the Netherlands, former UECCC Managing Director Specioza Kimera Ndagire, representatives from Ossberger GmbH and Senior Counsel Ruth Sebatindira from Ligomarc Advocates.
The ORIO mini hydropower project, funded by a €13.1 million grant from the Government of the Netherlands – Invest International, aims to construct nine mini hydro power plants with a total capacity of 6.7 MW. This initiative will establish a local distribution network stretching 288 kilometers, connecting up to 71,081 households and 2,300 small and medium enterprises (SMEs) across several districts, including Kasese, Bushenyi, Mitooma, Hoima, Kabarole, Bunyangabu, and Bundibugyo.
In his opening remarks, Roy Nyamutale Baguma the Managing Director of UECCC welcomed all parties to the contract signing ceremony and expressed gratitude for the collaborative efforts between Uganda and the Netherlands. “The small plants provide a captive, stable, and reliable source of power for rural electrification in the project area, which mitigates the challenges of wheeling power over a long distance,” he stated. He also highlighted that the basis for selecting the project sites was high social return in terms of rural electrification and not commercial viability.
UECCC has partnered with two contractors for this project: HNAC Technology Co. Ltd from China will manage the civil and hydro-mechanical works, while Ossberger GmbH from Germany will oversee the design, manufacture, supply, and installation of the electromechanical components. Baguma also expressed optimism for a successful partnership with Ossberger, noting, “We look forward to a good working relationship as we implement phase one of the project in Hoima, Nchwera, Igassa, and Nsongya, targeted to be completed within 24 months.”
The project is co-financed by the Government of Uganda and the ORIO Infrastructure Fund, reaffirming the commitment to enhance electricity access in the country. Current statistics indicate that only about 40% of Uganda’s population has access to electricity, underscoring the urgency of this initiative. The project aligns with the Government of Uganda’s policies and the National Development Plan III (NDP III), which prioritizes increased access to electricity for rural communities.
Former UECCC Managing Director, Ms. Specioza Kimera Ndagire, remarked on the significance of the event, saying, “It’s been a long journey since the conceptualization of the ORIO Mini project. I congratulate everyone on achieving this milestone. I thank the government of the Netherlands for never giving up and walking this journey with us all the way.” She expressed her optimism for the project’s success and extended her best wishes to the technical teams involved.
Mr. Joost van Ettro emphasized the importance of energy access for development, stating, “For us as the Netherlands, access to energy is a key to development. I’d like to applaud Uganda for its investment in both petroleum and renewable energies. All the electricity we enjoy in Uganda comes from hydroelectricity, and this project presents another opportunity to bring energy to people who are not yet connected to the grid.” He reiterated the Netherlands’ commitment to collaborating with all partners involved in the project.
Dr. Mass Daniel Ossberger, CEO of Ossberger GmbH, highlighted the dual impact of the project, stating, “It’s business on one side, but on the other hand, the good feeling for us is that we empower rural areas and bring electricity to people who have limited access. We are always here for you and will do our best to make these projects a success for all of us and Uganda.”
As the contractors prepare for mobilization, UECCC anticipates signing the Civil Works and Hydro-mechanical contract with HNAC Technology Co. Ltd in early August 2024. The project launch date in Mitooma District will be announced shortly, marking a significant step forward in meeting Uganda’s energy needs.
