BERLIN – STRABAG International GmbH and the Ministry of Finance, Planning and Economic Development are set to sign a Memorandum of Understanding regarding the Muzizi Hydro Power Project in Kagadi district, Western Uganda.
This was revealed by Mr. Jörg Wellmeyer, the STRABAG Managing Director on Tuesday 12 as he paid a courtesy call on H.E. Marcel R. Tibaleka, Uganda’s envoy to Germany to update him on the company’s ongoing projects in Uganda.
The 45 MW hydropower plant project is at the financial close stage and waiting for signing of the EPC Contract to start the construction works. Muzizi will be developed as a run-of-river power plant with additional peaking capacity to provide electricity during daily peak demand. The project, whose operational date is expected to be 2021, includes all construction measures, environmental and social mitigation measures as well as expert services to support the implementation and monitoring of the project.
Mr. Wellmeyer, who is also a member of the Executive Committee of the Africa Association of German Business, informed his host that STRABAG would be carrying out civil works for the upgrading of the 66 km Atiak-Laropi road from gravel to paved standard. The Atiak-Laropi road connects traffic to the Gulu-Nimule Road, the primary trade route between Uganda and South Sudan.
STRABAG has been active on the African continent for more than 40 years and has successfully created infrastructure projects in many African countries.
Amb. Tibaleka noted that the objective of the Muzizi Hydropower Project would soon be achieved and that this would lead to meeting the energy needs of Uganda’s population for social and economic development and improving the quality and security of power supply in the country.
He said he was aware that the German Development Bank (KfW) had in December 2016 provided a concessional loan of EUR 40 million and a grant of EUR 5 million while the French Development Bank (AFD) contributed a concessional loan of EUR 45 million and the Uganda Government made an equity contribution of about EUR 20 million to ensure full financing of the EUR 110 million project.
He thanked the European Investment Bank (EIB) for funding 90% of the EUR 72.2 million cost of upgrading the Atiak-Laropi roadworks and pledged the full support of the Embassy especially in facilitating the Germany teams from both projects with the required consular and protocol services.