Uganda Energy Credit Capitalisation Company Signs Contract With Chinese Firm for ORIO Mini Hydropower Project

The Uganda Energy Credit Capitalisation Company (UECCC) held a contract signing ceremony today for the civil and hydromechanical works of the ORIO mini hydropower project. Eng. Irene Pauline Bateebe, the Permanent Secretary of the Ministry of Energy and Mineral Development, presided over the event and emphasized the project’s importance for enhancing energy access in Uganda.

“The Government of Uganda recognizes energy as a key driver of development and has established a conducive policy framework to ensure adequate and reliable energy to propel our economy,” Bateebe said. She highlighted the ambitious goal of increasing electricity access from 19 percent in 2022 to 80 percent by 2040.

The ORIO project aims to construct nine mini-hydropower plants with a total capacity of 6.7 megawatts and develop a local distribution network spanning 288 kilometers. This initiative is expected to connect about 71,081 households and 2,300 small and medium enterprises across districts such as Kasese, Bushenyi, and Hoima. Bateebe noted that these small-scale schemes will provide a stable and reliable power source for rural electrification, addressing the challenges of long-distance power transmission.

Roy Nyamutale Baguma, Managing Director of UECCC, expressed optimism about the project’s future. “UECCC has selected two contractors to implement the project. HNAC Technology Co. Ltd from China will handle the civil and hydromechanical works, while Ossberger GmbH from Germany will design, manufacture, supply, and install the electro-mechanical components,” he said.

HNAC Technology Co. Ltd is a publicly listed company in China with 30 years of experience in water conservancy, electric power, and environmental protection solutions. Baguma added, “We look forward to a successful partnership with HNAC Technology Co. Ltd as we implement phase one of the project.” Chu Ao Qi, a representative from HNAC, expressed gratitude to the Government of Uganda and reaffirmed the company’s commitment to delivering quality work. “HNAC is a responsible contractor that delivers quality on its projects. We will try our best to ensure we deliver good works,” Qi stated.

The project is funded through a €13.1 million grant arrangement between the Governments of the Netherlands and Uganda. Joost Van Ettro, the deputy ambassador of the Kingdom of the Netherlands to Uganda, remarked, “Energy is a key enabler for so many things. Without energy, communities cannot reach their full potential. We are looking forward to the next phase: the groundbreaking and the actual realization of all nine mini-hub projects.” He commended the project teams for their perseverance and emphasized the Netherlands’ alignment with Uganda’s National Development Plan III, which aims to increase average household incomes and improve the quality of life for Ugandans over the next 30 years.

The ORIO mini hydropower project promises significant socio-economic benefits by providing reliable energy access, enhancing household incomes, and supporting regional transformation. It aligns with the United Nations Sustainable Development Goal 7, which seeks to ensure universal access to affordable, reliable, sustainable, and modern energy services by 2030.

With the contract signed, contractors are set to begin mobilization, with the first phase of the project expected to be completed within 24 months. Bateebe urged the contractors to focus on timely delivery, stating, “I call upon the contractors to deliver the first phase within the contracted period, enabling the Government of Uganda’s continued efforts toward achieving targeted electricity access for all by 2030.” She also emphasized the importance of considering community needs during project implementation.

The successful rollout of the ORIO mini hydropower project marks a critical step toward achieving Uganda’s energy goals and improving the living standards of its citizens.