Uganda Energy Credit Capitalisation Company (UECCC) has signed a €13.1m (Shs52.6b) contract to implement the ORIO mini hydropower project, in which nine dams with a total generation capacity of 6.7 megawatts, will be constructed.

The project, funded by a grant from the government of the Netherlands - Invest International - will establish a local distribution network stretching 288 kilometers, connecting up to 71,081 households and 2,300 small and medium enterprises in Kasese, Bushenyi, Mitooma, Hoima, Kabarole, Bunyangabu, and Bundibugyo districts. Mr Roy Nyamutale Baguma, the UECCC managing director, said in a statement the collaboration between Uganda and the Netherlands “provides a reliable source of power for rural electrification to “mitigate challenges of wheeling power over a long distance”.

The project will be implemented by HNAC Technology from China, which will manage civil and hydro-mechanical works, while Ossberger GmbH from Germany will oversee the design, manufacture, supply, and installation of electromechanical components.

Mr Baguma indicated that the project will be implemented in a phased manner, with the first phase, which is expected to be completed in 24 months, taking off in Hoima, Nchwera in Rukungiri, Igassa, and Nsongya in Bunyangabu.

The project, co-financed by government of Uganda and ORIO Infrastructure Fund, reaffirms the commitment to enhance electricity access. Data indicates that only 40 percent of Ugandans access electricity.

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