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.

Stories Continues after ad

Uganda’s government has set an ambitious target to grow its economy to $500 billion within 15 years.

“I would like to see a Uganda with five hundred billion dollars; we are now at about $53 billion,” said Ramathan Ggoobi, Permanent Secretary of the Ministry of Finance, Planning and Economic Development who was the chief guest at the 10^th annual Uganda National Journalism Awards ceremony held at Mestil Hotel in Kampala.

This vision is part of the government’s comprehensive strategy to transform Uganda’s economy.

To achieve this, the government is focusing on four key sectors: agro-industrialization, light manufacturing, tourism, and extractives. Agro-industrialization is a priority, with plans to raise its contribution to $20 billion by 2040.

“The target here is to raise it to twenty billion dollars by 2040,” Ggoobi explained. “This sector is one of our anchor sectors that is employing the bulk of Ugandans and quite a catalyst in nature.”

He emphasized the importance of investing in this sector to drive economic growth.

The country’s 10-fold growth strategy highlights the likely earnings from science, technology, innovation, and generally communication and technology.

Ggoobi said science, technology, and innovation have multiplier effects. “It is an anchor program which is going to create an economy-wide impact. We would want to see it promoted,” he said.

Ggoobi explained that the government now wants to do things differently to achieve good ambitions. “We want to take full advantage of the new way of doing things. We call it emerging technologies. We want to invest more in new sources of growth” among the actions to achieve the goals is the need to clean up by implementing the existing laws and regulations.

 “In Uganda, we are behaving as if chaos is the new normal. The way we live, the way we drive on the road, the way we sell goods in the market, it is all chaos. We would want to clean up by enforcing rules of the game” As part of those efforts, the Ministry of Finance suggests the rollout of Indicative Planning Figures (IPFs) so that limited funds are efficiently utilized.

Tourism is another vital area, with a goal of generating $50 billion by 2040.

“We intend to maximize easy mobility of entry and exit from Uganda by airlines, including our own Uganda Airlines,” said Patrick Ocailap, Deputy Secretary to the Treasury.

The government plans to invest in infrastructure and facilitation to attract more tourists.

Stories Continues after ad