The Uganda government will develop the 600 MW Karuma Hydropower project as a public project. This is intended to increase power generation capacity, as demand for electricity in Uganda is rising rapidly.

Simon Ujanga, Uganda’s junior minister for energy and minerals, said the $2bn funds required for the project are expected to be raised by the government from internally-generated savings, grants and loans.

He also said that East African countries need to take a lead in the development of the energy sector while providing incentives to private investors in order to end the current power crisis.

Construction of the hydropower plant is scheduled to begin in early 2012. Currently, the Uganda government is seeking to find a contractor for the project.

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