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It’s a milestone as Museveni commissions 600MW Karuma Hydro power station

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Uganda now boosts of 2,000MW while the country was only generating 380MW in 2005

President Kaguta Museveni has commissioned the $1.7 billion (Shs6.3 trillion) Karuma Hydroelectric power station in Kiryandongo District.

Karuma Hydropower Station commenced commercial operations on June 12, 2024, with an installed capacity of 600MW. Six vertical Francis turbine generator units, each with a capacity of 100MW, generate this capacity.

Speaking at the commissioning of the power project, Museveni said Uganda is a more blessed nation in terms of natural resources. Once we realize industrialization, many of those products can be produced here domestically and exported to other foreign nations, which will in turn increase our GDP.

Museveni emphasised the importance of addressing fundamental needs such as food access, employment, market security, raw material supply, and housing issues.

“This leadership is not as simple as you people think. To be a leader, you must be able to see far. I rejected a proposal to ban rice imports from Tanzania. I cannot be part of that blindness,” he said.

He noted that sleeping is good. When people are sleeping, they don’t know what they need. Now you have seen that when you wake up a bit and start producing [goods], the internal market is not enough. The internal market for maize, milk, rice, sugar, etc. is not enough. That’s why we must insist with our brothers in the neighbouring regional countries and Africa for market integration.

In June 2013, the Ugandan government contracted Sinohydro, a Chinese construction company, to construct Karuma Hydropower Dam. The construction was expected to last five years. Construction costs were to be jointly funded by the Ugandan and Chinese governments.

“The Karuma Hydropower Project is a significant milestone in the implementation of Uganda’s Vision 2040 and National Development Plans. It serves as a catalyst for economic growth, industrial expansion, and improved livelihoods for our people.” Vice president Jesica Alupo said.

Speaking earlier today, Engineer Irene Batebe, the Permanent Secretary in the Ministry of Energy and Mineral Development, said the Karuma Hydropower Plant is the largest hydropower project ever constructed in Uganda. These turbines harness the immense energy of the Nile River, one of our most significant natural resources.

“Over the past two decades, our total national installed generation capacity has increased from 380MW in 2005 to over 2,000 MW in 2024, including what we are commissioning today,” Ruth Nankabirwa, the Minister for Energy and Mineral Development, said.

In June 2014, the Exim Bank of China committed in writing to fund 85 percent of the construction costs, in the form of a concessionary loan repayable in five years. The Ugandan government will fund the remaining 15 percent of the cost.

In March 2015, the Ugandan Parliament assented to two loans totaling $1.435 billion, from the Export-Import (EXIM) Bank of China for the construction of the power station. Of that amount, $789.3 million will be loaned at two percent per annum, repayable over 20 years, while $645.82 million will attract four percent interest, payable over 15 years, effective the day the dam is fully commissioned.

Uganda invested $253.26 million to start the construction, and that brings the total funds committed to the project as of March 2015 to $1,688,380,000.

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