Uganda Launches ORIO Mini Hydropower Project to Boost Rural Electrification

The Government of Uganda, through the Ministry of Energy and Mineral Development and the Uganda Energy Credit Capitalisation Company (UECCC), has broken ground for the ORIO mini hydropower project in Western Uganda. 

The ceremony comes six months after signing the Electromechanical Works Contract for the project.

The ORIO mini hydropower project involves constructing nine mini hydropower plants with a combined capacity of 6.7 MW and a local distribution network spanning 288 km. 

The project area covers Kasese, Bushenyi, Mitooma, Hoima, Kabarole, Bunyangabu, and Bundibugyo Districts. Upon completion, 71,081 households and 2,300 Small and Medium-sized Enterprises (SMEs) in rural Western Uganda will be connected to electricity.

HNAC Technology Co. Ltd from China will handle civil and hydro-mechanical works, while Ossberger GmbH from Germany will design and install turbines and electromechanical works. The project is expected to be completed within 24 months.

UECCC Managing Director Roy Nyamutale Baguma stated that phase one will include four sites: Nchwera, Igassa, Nsongya, and Hoimo. “After completing the project, we’ll outsource operational maintenance to another stakeholder,” Baguma said.

Deputy Speaker Thomas Tayebwa emphasized the importance of projects like ORIO in enhancing livelihoods through improved energy access. 

“Electricity is a fundamental pillar of economic growth,” he said, highlighting the challenges faced by communities with unreliable and expensive power supply.

Minister of Energy and Mineral Development Ruth Nankabirwa said the government’s electricity generation strategy aims to support the transformation agenda by phasing out practices like firewood and charcoal use. 

The project will significantly impact rural electrification, connecting over 376,000 people and 2,300 SMEs to stable electricity.

The project is funded by the ORIO Infrastructure Fund (now “Invest International”) of the Netherlands Government, with co-financing from the Government of Uganda and UECCC as the implementing agency. UECCC accessed a €13.1 million grant (approximately UGX 50 billion) for the project.

Joost Van Ettro, Deputy Ambassador and Head of Development Cooperation at the Embassy of the Kingdom of the Netherlands in Uganda, stated that Invest International contributed UGX 50 billion, covering 30% of the project, while Uganda committed to covering the remaining portion.

To date, all Project-Affected Persons (PAPs) have been fully compensated, and primary residents have been resettled in newly constructed resettlement houses.