Kampala — Uganda's largest power project, Karuma Hydro power Dam, works are on schedule, based on a ministry of Energy official.
Mr Fred Kabagambe-Kaliisa, the permanent secretary Ministry of Energy and Mineral Development confirmed that building works was at the range of 27 to 30 percent.
"The powerhouse excavation is near conclusion. This is the most important aspect of the construction of underground energy systems and programs like Karuma, " Mr Kabagambe-Kaliisa stated in a declaration after undertaking an on-spot assessment of this project on Monday.
He more stated: "general construction development regarding the Karuma Hydropower venture is on routine."
The 600MW Karuma energy Dam is found in Kiryandongo District and it is being constructed at a high price of $1.4b (Shs4.8 trillion).
The start of construction works was in fact initially delayed by virtually per year after the Uganda federal government therefore the loan provider; Asia's Export and Import Bank were yet to agree on disbursement of funds.
"we have been very optimistic that individuals shall finish the task in December 2018. When the project just isn't delayed but progresses as scheduled, then your electricity tariffs are managed, " Mr Kabagambe-Kaliisa included.
Price of power
The present price of energy from the Bujagali Hydro energy Project is 12 United States cents (Shs409.2) per kilowatt-hour, according to the Uganda Electricity Generation Company (UEGCL). Also UEGCL additionally estimates that price of producing electricity from the heavy gas generators is 18 US dollars (Shs613.8) per kilowatt-hour. With Karuma, an electric acquisition agreement with energy distributor Umeme is yet to be finalized but estimates suggest your expense could fall to 5 US dollars (Shs170.5 ) per kilowatt-hour.
The fee happens to be topic of concern from company community from associations like the Uganda Manufacturers" Association.
The tariff regime features heard of cost of energy constantly rise going back three years. This, consequently, pushes within the price of manufacturing.
The greater expense has-been blamed on commercial loans acquired in the construction of the Bujagali energy Dam.
Mr Kabagambe-Kaliisa stated your choice by government to borrow cash from Asia offers a lower interest, which would lead to lower tariffs.