The Ugandan government is seeking a new investor for the $5 billion Ayago Hydropower Project, which is expected to generate 840 MW of electricity upon completion. Minister of Energy, Ruth Nankabirwa, has raised concerns over delays in the project’s implementation and suggested that the government may explore alternative investors. The project was initially awarded to Bridging Foundation, which committed to investing $2.5 billion in energy development and a further $2.5 billion in infrastructure projects. However, slow progress has prompted the minister to impose a 365-day deadline for the Foundation to meet specific conditions. She has also informed President Yoweri Museveni of the need to consider other potential investors to ensure the project remains on schedule.
Located on the River Nile, the Ayago Hydropower Project is a key component of Uganda’s energy strategy. Once operational, it is expected to strengthen the country’s electricity supply, support industrial expansion, and encourage further investment in infrastructure. The government has emphasised the importance of increasing power consumption and attracting additional projects that will enhance energy security and economic development.
Uganda is also investing in other major energy projects, including the 392 MW Oriang Dam, a 150 MW solar power plant in Buliisa, and a 100 MW solar project in Masindi. Furthermore, geothermal energy exploration has identified a potential 1,500 MW capacity, drawing interest from private sector investors. The government is also advancing plans for nuclear energy and conducting feasibility studies for additional renewable energy projects.
With these large-scale infrastructure developments underway, the demand for construction, concrete, and material handling equipment is expected to rise. Companies in these sectors should position themselves to take advantage of emerging opportunities within Uganda’s expanding energy and infrastructure industries.
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