7 August 2013 – China International Water and Electric Corporation (CWEC) has signed a memorandum of understanding with the government of Uganda on the construction of the 188 MW Isimba hydroelectric scheme.

The project will be funded through a US$750 million loan from the Chinese government and Exim Bank. Isimba will be located 40 km downstream from the Bujagali 250 MW hydroelectric scheme which began supplying power in 2012.

In addition to the Isimba project, the extension of power to more areas in Uganda is expected to be boosted by smaller hydropower projects that will deliver 68.5 MW to the national grid. They include Buseruka (9.0 MW), Nyagak I (3.5 MW), Kisizi (0.26 MW), Bugoye (13 MW), Mpanga (18 MW), and Ishasha (6.5 MW).

In June 2013 Uganda awarded China’s Sinohydro group a contract to build the 600 MW Karuma hydroelectric scheme, the country’s biggest power project to date. This project will cost US$1.65 billion, and will be financed by a US$500 million Chinese loan.