Uganda opens a $1.7 billion electricity plant that was paid for by China

An $1.7 billion power plant built on the Nile River was officially opened by Uganda on Thursday. It is the country’s biggest power plant.

Construction of the Karuma Hydropower Project (KHP) by Sinohydro Corporation greatly increases Uganda’s power generation potential, now just above 2000 MW.

Starting in 2013, construction on the plant was pushed back several years and missed several deadlines for completion.

Speaking at the plant’s opening ceremony in Kiryandogo, northern Uganda, Chinese Ambassador Zhang Lizhong called it a “flagship project of China-Uganda cooperation.”

He said the power plant would “connect millions of households with affordable electricity … and contribute to sustainable clean energy for east African development.”

In addition to Kenya, Rwanda, and Tanzania, Uganda also sends energy to these countries.

Also started on Thursday was a 400 kV transmission line that goes for 248 kilometers (154 miles) and carries the power.

Additionally, work is being done on a $180 million transfer line that will allow Uganda to send power to South Sudan, which is currently without enough energy.

As a result of COVID-19 and other problems, the plant was not finished on time, according to Energy Minister Ruth Nankabirwa.

In total, China’s Exim Bank lent $1.4 billion, which was 85% of the project’s cost. The government provided the leftover funds.