Construction of $500m hydropower plant commences in Uganda

China International Water and Electric Corp. has begun building 188 MW Isimba hydro power plant in Uganda, Africa a project expected to cost in the region of $500m.

There is considerable Chinese investment in the country’s energy programme already with China's Sinohydro Group Ltd. (601669.SH) already building the 600 MW Karuma hydro power plant, while state-owned Cnooc Ltd. (0883.HK, CEO) is in the process of developing the giant kingfisher oil field, in the oil-rich Lake Albertine rift basin.

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Ugandan President Yoweri Museveni commissioned construction works at the project, located on the White Nile, some 40 kilometres downstream of the existing Bujagali hydro power plant, a presidential spokeswoman said in a statement.

The Isimba plant will be financed by a concessional loan provided by China's Export and Import Bank and is expected to be completed in 34 months.

The Chinese ambassador to Uganda Zhao Yali said during the ceremony that China would keep supporting infrastructure development in Uganda to boost its industrialization process.

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