22 November 2007 – A licence to build, operate and own a US$26 million 10MW hydropower plant has been approved by the Electricity Regulatory Authority (ERA) of Uganda.

The licence was issued to Hydromax, which will also construct a 46km transmission line connecting the plant to the national grid.

"We granted Hydromax a licence to build, own and operate the hydro- power project. Everyone supported the project at a public hearing," said Johnson Kwesigabo, acting chief executive officer of the Electricity Regulatory Authority.

Environmental and water permits have been issued and feasibility studies carried out. Local area leaders have been consulted and it is believed the project will accelerate rural electrification.

The licence was awarded as part of the Government’s initiative to attract more private investors into the power industry and increase generation capacity.

Other licences issued by ERA recently include the West Nile Rural Electricity Company, Eco Power for the Ishasha hydropower site in Bushenyi, China Shang Sheng International for Kikagati hydro in Isingiro and Aggreko International for the Lugogo and Kiira thermal plants.