Within two weeks, work at Uganda’s Karuma power plant is expected to start after government awarded Chinese firm Sinohydro the tender to build the 600 megawatt (MW) dam.
Energy Minister Irene Muloni signed the contract on behalf of the government, while Zhanga Yunli, chairman of Sinohydro Corporation, signed for the Chinese. "The government of the Republic of Uganda has decided to award the EPC contract for constructing the 600 MW Karuma hydro power plant (HPP) and the associated transmission line (Karuma interconnection project) to Sinohydro Corporation," a government statement said.
"Sinohydro has promised to commence works at Karuma within two weeks, thereby ensuring that the delivery of power consequently commences at the earliest possible date and without any further delays," the statement says.
The deal comes after President Museveni held talks with China's President Xi Jinping, in Durban, South Africa, during the BRICS (Brazil, Russia, India, China and South Africa) summit early this year.
The two agreed to quickly come up with a solution for Karuma dam’s construction, after the procurement process for a contractor had been mired in endless controversy.