The European Union has announced a massive investment of 60 million euros ($63 million) towards the modernization of the ancient Nalubaale and Kiira hydropower plant complex, which is expected to revitalize Uganda’s energy landscape.
Located in Jinja, close to the pure Nile source, this power plant has been a mainstay of Uganda’s energy output since its establishment in 1954.
This large-scale endeavor follows the completion of a 20-year concession with Eskom, the massive South African energy company that managed the plant’s operations until the beginning of this year.
A new era of advancement is about to begin, with the Ugandan government firmly holding the reins.
The EU’s ambassador to Uganda, Jan Sadek, gave a compelling speech at a mining conference in Kampala to introduce this revolutionary project. “We intend to invest approximately 60 million euros towards the restoration of Kiira and Nalubaale hydropower plants, with the goal of securing dependable energy for Uganda’s industrial development.”
Sadek stated that this enormous expenditure is in line with the EU’s global gateways strategy, an ambitious plan designed to achieve the Sustainable Development Goals of the United Nations by 2030, even though the details of the cash distribution are still unknown.
Uganda, which frequently struggles with inadequate energy infrastructure, has seen extensive power outages and sporadic malfunctions as a result of the aged network’s wear and tear.
At present, the country’s energy production stands at 1,400 MW, mainly from hydroelectric sources. However, this project is expected to increase it to 2,000 MW when the Chinese-built, state-of-the-art Karuma plant is put into operation later this year.
With the transfer of control of the Nalubaale and Kiira hydropower facilities, Eskom’s remarkable 20-year stint in Uganda’s electricity producing landscape officially comes to an end.
Notable is Eskom’s enormous US$52 million investment in the complex, the most of which went toward the historic Nalubaale plant, which has continuously supplied electricity to the country for an astounding 68 years.
This cash investment has guaranteed the Nalubaale plant three more decades of operation and reinforced its critical role in providing Uganda with a stable supply of energy.
Uganda Electricity Generation Company Limited (UEGCL) CEO Emmanuel Mutikanga expressed excitement about the smooth transition and guaranteed continuity with Eskom’s seasoned staff, some of whom have been around since the days of the former Uganda Electricity Board.
The European Union’s bold investment in Uganda is evidence of the shared vision for a thriving energy future that will accelerate the country’s industrialization process and bolster its economic strength internationally.
The effects of this undertaking are expected to be felt far and wide as the wheels of progress turn, signaling the beginning of a new era of prosperity and abundance in Uganda’s energy sector.
