The story of the 600 Mega Watt (MW) Karuma AHydro Power Project is a testament to President Gen (Rtd) Yoweri Museveni’s vision, strategy, and actions towards Uganda’s social and economic transformation. Through the Ministry of Energy and Mineral Development (MEMD), the Government conceived the Karuma Hydro Power Project and entrusted  M/S NORPAK for development under the private sector in 1996.
M/S NORPAK, a Norwegian Independent Power Producer, envisaged the project as a run-off river hydropower facility with an installed capacity of 200 MW on the Nile River. The firm commenced the development of the Project Definition Report and undertook the environmental and social impact assessment and Compensation of the Project Affected Persons in 1997.
The National Environment Management Authority (NEMA) received and approved the Environment and Social Impact Assessment Report in 1999. In 2006, however, M/S NORPAK revised the project proposal, which envisaged the project’s development in two phases, with 100 MW installed capacity in the first phase and 100 to 200MW capacity development in the second.
For many reasons, M/S NORPAK pulled out of the project and handed the project designs, maps, and technical studies back to the Government of Uganda for Implementation in 2008.
In 2010, the Government decided to take over the development of the revamped Karuma Hydro Power Project as a Public Sector Project. The Ministry of Energy and Mineral Development (MEMD) and the Uganda Electricity Generation Company Limited (UEGCL) jointly proposed a new Karuma Hydro Power Project of 600-700 MW installed capacity. The Ministry of Energy and Mineral Development commenced identifying a suitable bidder for the Engineering, Procurement, and Construction (EPC) Contractor.
More than 30 firms expressed interest, but only five were shortlisted. Before the Ministry of Energy and Mineral Development announced the best technically evaluated bigger, a whistleblower petitioned the Inspectorate General of Government (IGG) to halt the process over corruption allegations.
The IGG stopped the procurement process and ordered the Contract Committee to restart the process. Before the procurement process commenced, the same petitioner went to Court to halt the process. This time, the High Court ruled that the Contract Committee re-evaluate and announce the best bidder.
The Ministry of Energy and Mineral Development announced M/S Synohydro Corporation Limited as the best-evaluated bidder.
The Government of Uganda negotiated bilateral arrangements with the Government of the People’s Republic of China for long-term credit facilities to keep the end-user electricity prices affordable. The EXIM Bank of China agreed to fund 85% of the Karuma Project, while Uganda would fund the remaining 15%.
The President directed that the Energy Fund, which had accumulated to US$ 75 million, be used to kick-start the project’s development. The Energy Fund facilitated the commencement of the 250 MW Bujagali Hydropower Project.
On August 15th, 2013, President Yoweri Museveni laid a foundation stone to commence the Karuma Hydro Power Project construction. Karuma Hydro Power Project has presented invaluable lessons to learn for future project implementation. But we are here to celebrate its competition today.
The President’s vision, strategies, actions, and actions reflect his desire and passion to expand access to modern energy services for Uganda’s social and economic transformation. I congratulate the President of Uganda, Energy Sector Players, and the People of Uganda on commissioning the 600 MW Karuma Hydro Power Project.
By Ibrahim E. Kasita
Principal Stakeholder Engagement Officer