HomeEvent NewsNew budget highlights key role of energy in Ugandan development plans

New budget highlights key role of energy in Ugandan development plans

On 8th June Maria Kiwanuka, Minister of Finance, Planning and Economic Development, presented the 2011/12 budget to the Ugandan Parliament.  This is the first budget since the promulgation of the National Development Plan and is expected to implement the manifesto of the new Government.

Key to the business community is increased investment in energy infrastructure and skills development

Key energy infrastructure feedback on the 2010/2011 budget was as follows:

Due to geological complications, the Bujagali project was not able to deliver its first power by July 2010 but the first 50MW is now expect in October 2011.

The following renewable energy projects have been installed:

  • 10MW Mpanga power project
  • 6.5MW Ishasha power is due for commissioning in June 2011

Project under development include:

  • 10MW at Buseruka
  • 1MW and Maziba

In addition, feasibility studies for the 600MW Karuma Hydropower project have been completed and the government is ready to commence construction.  Another feasibility study for the Isimba Hydropower project is due for completion in the next financial year.

Priority areas for the 2011/2012 budget include:

For the development of the electricity sector in Uganda, an amount of 850 billion shillings or $353 million has been allocated for the following interventions:

  • Completion of 259MW at Bujagali
  • Commencement of construction of Karuma at a cost of Sh828.6 billion
  • Completion of preliminary work at Isimba, which will be developed by private funding
  • Feasibility of study on the first phase of the 600MW Ayago hydropower plant.

Most of the above mentioned project will be funded through a multi-pronged effort of domestic revenue, public private partnerships and traditional finance sources such as bi-lateral and multilateral institutions.

Financing of the Rural Development initiatives will continue to be funded by the government.