“Plans by Uganda to start building the planned 700 MW Karuma hydropower project this year have been thrown into jeopardy, following disagreements with would-be financiers over the design and capacity of the plant.
Days after the East African nation abolished subsidies in the energy sector, prompting a huge rise in the cost of electricity, the potenial financiers, including the Germany Development Bank, the World Bank and the European Investment Bank, stated that it was not realistic that the water flow at Karuma would sustain the generation of 700 MW.
They argued that it did not make economic sense for Uganda to invest heavily in the project when it was clear the plant would only achieve full capacity during specific periods. The project has a $1.3-billion price tag.”
Read more: Engineering News