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President: Uganda to self-fund US$1.2 billion for Karuma hydro

Uganda President Yoweri Museveni announced Uganda will construct the US$1.2 billion Karuma hydroelectric project from its own resources. Addressing a southern and central Africa conference in Lusaka, Museveni said Uganda had completed drawing up plans for Karuma. Although the project originally was listed as 250 MW, Museveni said in January that the government decided to nearly triple the size of Karuma to 700 MW. "We are now in the process of spending US$1.2 billion (to construct a dam) and we are going to fund it all by ourselves," Museveni told delegates at the conference. He said the region's economic growth was hampered by power shortages due to lack of investment in the sector for decades. Uganda's Ministry of Energy and Mineral Development took bids in March for detailed design and construction supervision of an enlarged version of Karuma on the Nile River. (HNN 1/8/09) An addendum to the Karuma solicitation said the new terms of reference would reflect a bigger project.

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