Electricity Regulatory Authority (ERA) has revealed that government will deliver a final decision on an application for a licence to build another hydroelectric power plant on the Nile River in Nwoya district from a Chinese firm.
The firm, POWERCHINA International Group Limited (PIGL), wants to develop the Ayago Hydroelectric Power Station, located on a section of the Nile between lakes Kyoga and Albert, according to its licence application.
Senior ERA official Julius Wandera, Uganda is also to conduct its own due diligence on POWERCHINA International to ascertain whether it had the financial and technical capacity to execute the project
“By April we should be communicating our final decision on their application to them,” he said.
According to their application, the firm plans to raise funds for the project through a 25-75 percent mix of equity and debt.
The $1.4bn plant, if approved, will expand the country’s power generation by 40 percent.