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Thursday, 28th February 2019
A drilling rig at a drill site, then still operated by Tullow Oil, in the Lake Albert Rift Basin. Photo Credit: Tullow Oil
Energy is the prime mover of any country's economic growth and prosperity. Uganda needs adequate, reliable and affordable energy to enhance sustainable development. It is for this reason that energy is a priority sector for development in the Country. Uganda is well endowed with enormous natural resources such as Minerals, hydro, geothermal, petroleum resources, solar thermal yet only a small fraction of this potential has been harnessed. Power Generation Projects in the Medium Term Government is making effort to develop the following power generation projects through Public-Private Partnership (PPP).
  1. 30MW cogeneration from bagasse by 2020.
  2. 450MW geothermal power 
Transmission Projects in the Medium Term:

In order to evacuate power from the generation plants and facilitate power trade between Uganda and neighbouring countries, Government has planned to undertake construction of several transmission lines and associated substations that include among others;
  • 400KV Masaka - Mbarara project (160 km), 
  • 400KV Uganda - South Sudan project (380 km),
  • 220KV Uganda - Tanzania project (250 km),
  • 220KV Uganda - Democratic Republic of Congo project (340 km) and 132kV Lira - Arua transmission line (314 km).
Besides, Government is aiming at increase rural electrification from the current 20.6% to 80% by 2040.

Investment Opportunities in the Power Sub-Sector:
  1. Participation in Public-Private Partnerships for Power generation Projects.
  2. Contribution to equity in financing of power projects.
  3. Participation in the Engineering, Procurement, and Construction (EPC) of the planned power projects.
  4. Supply of equipment as we upgrade and expand our National Transmission network.
  5. Participation in the development and promotion of the different renewable energy technologies such as geothermal, solar water heaters, solar driers, solar cookers, etc.
Investment Opportunities in the Oil and Gas Sub-Sector:

1) Kabale Industrial Park:
  • Government has planned development of an industrial park at Kabale where the oil refinery will be located. The park will include among others Petrochemical Industries and a Greenfield airport. This provides an opportunity for direct participation of private sector.
2) Oil and Gas Transportation and Storage Infrastructure:
  • Uganda intends to use gas imported from Tanzania as well as produced locally as a reducing agent in iron ore smelting. Therefore, there is an opportunity for private sector participation in the development of Greenfield gas pipe line.
  • Uganda has put in place a national Strategy and Plan to develop oil Transportation and Storage infrastructure that will require participation of Private sector.
This section details investment opportunities and innovations in the private and public sector.

PROJECT TITLE: Solar Car Manufacturing
Site/Location: Plot 701, Block 2 Kagogwa, Mawaito Parish, Kakira Town Council. Uganda
Project Description:
Kiira Motors Corporation (KMC) is supported through the Presidential Initiative for Science and Technology Innovation to commercialise the Kiira Electric Vehicle Project, a brainchild of Makerere University. KMC is aimed at setting up and operating a vehicle assembly plant in Uganda.

The KMC Plant shall be designed with a Multiple Line and Multiple Model Assembly Shop for Pick-Up Trucks, Light and Medium Duty Trucks, SUVs and Buses. The assembly plant shall operate in partnership with seasoned global auto manufacturers.

Vehicle Assembly is viable in Uganda. Forecasts production volume of 300 units a year. Average market share of 14% of the Pick-Up Trucks.

PROPOSED INVESTMENT: Geothermal Exploration & Development at Buranga Prospect
Site/ Location: Buranga Hot Springs, Bundibugyo District
Project Description:
Buranga geothermal prospect located at Sempaya, Bwamba Road, Bundibugyo District, West-Uganda is one of the potential areas for geothermal exploration and development. The pre-feasibility studies done at Buranga geothermal prospect indicate subsurface temperatures of approximately 150 - 200 degrees Celsius. The temperatures are suitable for electricity production and direct use in industry and

GIDS Consult Limited is currently carrying out exploration and evaluation of geothermal energy with an aim of developing at least 100 MW Geothermal Power Plant at Buranga prospect. The company is planning to drill 3 deep exploration/production wells at the prospect and develop a 30 MW well-head geothermal power plant units at each successful wells. The company shall develop a 100 MW geothermal power plant.

PROJECT TITLE: Mukoki Hydro Power Project
Project Description:
Generation Flow: 7 m3/s
Installed capacity: 3400 kW
Annual energy: 15,569 MWh
Plant Factor: 0.53
No. of turbines: 02
Type of Turbine: Francis
Catchment area: 915.71 km2
Rated flow: 7.7 m3/s
Net Head: 60.3 m
Length of weir: 19 m
Length of conveyance channel: 2472.86 m
Length of penstock pipe: 737.5 m

Financial Indicators:
Project cost: 7.05 Million
Loan Repayment: 6 Years
Tariff: Flat Rate (10.7 US cents /kw)
Internal Rate of Return on equity after tax: 23.3 %
Internal Rate of Return on capital: 14.2%
Admin, operation & maintenance cost: 0.3 Million/Year (10% annual increment)

PROPOSED INVESTMENT: Kyenjogyera Mini Hydropower Generation Project.
Project Description:
The Tegemea Holdings Uganda Ltd proposes to set up energy resource facility (the Kyenjogyera Mini Hydro Power Project (MHP)) in Kakamba Village, Bisya Sub County, Buhweju District, Western Uganda. The Kyenjogyera MHP is a proposed hydropower facility expected to generate 190KW of electricity with an average annual energy output. The proposed Kyenjogyera MHP is to be located along River Kyenjogyera in the village of Kakamba. All the civil engineering structures will be located within areas (Kyenjogyera and Kakamba) in Bisya Sub-county. The proposed weir (00 degrees 16'43.03''S, 30 degrees 28'58.59''E) and the headrace channel are to be located in the same village while the fore bay tank, penstock and powerhouse are also to be located within Kakamba village.

This facility will utilize the hydropower potential of River Kyenjogyera. The energy generated from the facility, amounting to approximately 190KW, will be used for water industrial plant, Hospitals, Agro processing enterprises, metal wielding and fabrication construction, and unlock the business potential in the surrounding areas as shall be agreed on between the firm and the legal authority (Uganda Electricity Transmission Company Limited (UETCL)), based on a power purchase agreement the company shall enter into with the UETCL.

PROJECT TITLE: Kabale Energy Project
Project Description:
Kabale Energy project is in the advanced stage of implementing a "Peat" based power generating Project for 33 MW power station near Kabale town, South West of Uganda. The project is estimated to cost USD 60 - 70 Million all inclusive. The power is to be supplied to the Government utility.

PROPOSED INVESTMENT: Initiative for Efficient Waste Management, Bio Energy Generation, Organic Fertilizer Production and Irrigation for Uganda Prisons.
Project Description:
The proposed project is aimed at developing a site waste management plan that would facilitate the production of biogas, electricity, organic fertilizer, irrigation water and animal feed for Uganda prisons service using the bio waste accumulated and available to the prisons all over the country.

Bio waste sources would include human agricultural and animal waste. We will determine the volumes of biomass available, their water content, calorific value and viability for resource recovery. We will address the specific needs of the prisons, and deploy a cost effective system of technologies to support the prisons while enhancing waste management.

For project inquiry, contact:

Source: Uganda Investment Authority & Uganda Embassy, Berlin