On July 25, 2024, the Uganda Energy Credit Capitalisation Company (UECCC) marked a significant achievement in rural electrification by signing the Electromechanical Works Contract for the ORIO mini hydropower project. This ceremony, held at UECCC headquarters, was attended by notable figures, including Mr. Joost van Ettro, Acting Ambassador of the Royal Kingdom of the Netherlands, former UECCC Managing Director Specioza Kimera Ndagire, representatives from Ossberger GmbH, and Senior Counsel Ruth Sebatindira from Ligomarc Advocates.
The ORIO mini hydropower project, funded by a €13.1 million grant from the Government of the Netherlands – Invest International, aims to build nine mini hydro power plants with a combined capacity of 6.7 MW. This project will create a local distribution network extending 288 kilometers, connecting up to 71,081 households and 2,300 small and medium enterprises (SMEs) in districts such as Kasese, Bushenyi, Mitooma, Hoima, Kabarole, Bunyangabu, and Bundibugyo.
Roy Nyamutale Baguma, Managing Director of UECCC, opened the ceremony, expressing gratitude for the partnership between Uganda and the Netherlands. He emphasized the project’s goal of providing a stable and reliable power source for rural areas, which avoids the challenges of long-distance power wheeling. The project sites were chosen based on the high social return of rural electrification rather than commercial viability.
UECCC has enlisted two contractors for this initiative: HNAC Technology Co. Ltd from China will handle the civil and hydro-mechanical works, while Ossberger GmbH from Germany will manage the design, manufacture, supply, and installation of the electromechanical components. Baguma expressed optimism for a successful collaboration, noting the project’s first phase targets completion within 24 months in Hoima, Nchwera, Igassa, and Nsongya.
Co-financed by the Government of Uganda and the ORIO Infrastructure Fund, this project underscores the commitment to improving electricity access. With only about 40% of Uganda’s population currently having electricity, this initiative aligns with the Government’s National Development Plan III (NDP III) goals.
Former UECCC Managing Director Specioza Kimera Ndagire highlighted the long journey to this milestone and expressed her gratitude to the Dutch government for their unwavering support. Mr. Joost van Ettro reiterated the importance of energy access for development and praised Uganda’s investment in renewable energies. Dr. Mass Daniel Ossberger, CEO of Ossberger GmbH, noted the project’s dual impact of business and empowering rural communities with electricity.
As UECCC prepares to sign the Civil Works and Hydro-mechanical contract with HNAC Technology Co. Ltd in early August 2024, the project launch date in Mitooma District will be announced soon, marking a crucial step in meeting Uganda’s energy needs.