Last Updated 14 years ago by Kenya Engineer
Uganda’s President, Yoweri Kaguta Museveni, on 8th October inaugurated the 250MW Bujagali Hydropower Plant . The ceremony happened at the eve of celebrations marking 50 years of Uganda’s independence in the presence of the Aga Khan and project partners Sithe Global.
The $860 million project is one of the largest privately-funded power sector investments ever made in Sub-Saharan Africa and sets a unique precedent for public-private partnerships. It was jointly funded by Industrial Promotion Services (IPS), the infrastructure and industrial development arm of the Aga Khan Fund for Economic Development, Sithe Global Power LLC (USA), a company majority owned by Blackstone Capital Partners IV, L.P among others.
The hydropower plant currently meets 49% of the country’s energy requirements providing clean, reliable power at lower costs than existing power generating facilities. Construction of the plant commenced in August 2007. It comprises five units of 50MW each, commissioned in phases between February 2012 and June 2012.The first unit of the plant became operational in February 2012.
Other than providing a reliable solution to Uganda’s power demands, it also plays as a catalyst for economic growth replacing emergency thermal generation costs, thereby saving US$ 9.5 million per month in government subsidies.
The plant will be operated by Bujagali Energy Limited (BEL), a company established by the project partners to operate and manage the plant, for a 30 year period following which it will be transferred to the government of Uganda for a nominal price of one US dollar.
The project is registered as a Clean Development Mechanism (CDM) making it the largest project ever registered in a Least Developed Country. It will yield an average of 900,000 Carbon Dioxide Emission Reductions (CERs) annually, putting it at the forefront of clean energy efforts.
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