Chinese to fund and build Uganda's Isimba hydroelectric dam

Dam will be Uganda’s fourth largest.

State-owned China International Water & Electric Corporation (CWE) signed a memorandum of understanding with the Ugandan government to build the dam, which is being financed by a Chinese government loan of US$570 million. The Chinese government and China's Exim Bank will provide the funds for the dam through a bilateral arrangement.

Preparations for signing a contract with CWE were ongoing and were expected to be concluded by the September.

Upon completion, the Isimba hydroelectric power dam will be the fourth largest in Uganda after the 250 MW Bujagali power project that was switched on last year, the 600 MW Karuma Dam and the 600 MW Ayago power station.

Isimba will be located 40 km downstream from Bujagali Dam. The project includes the construction of a 132 kilovolt power transmission line connecting it to Bujagali.

The hydroelectric power would be produced at 68 cents per kilowatt hour, considered the lowest in East Africa.