Uganda partners with Chinese firm to build hydropower dam

dam nile-ogwen flickrUganda has announced that it has signed a contract with China’s Sinohydro Group Limited to build a US$1.65bn hydropower dam on the White Nile river

The deal sees the East African country revive a project that had stagnated for several years due to a lack of funds.

According to government sources, the contract for the construction of the 600MW Karuma Dam is expected to start in the beginning of July 2013.

Uganda recently declared that China had provided credit worth US$500mn to help fund the construction of the dam, according to a report by Reuters.

A Sinohydro source said, “The project will cost US$1.65bn and will entail both developing the dam and a transmission line to evacuate the power from the generation site to the distribution network.”

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