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Uganda to resume work on 600-MW Karuma hydropower project

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Uganda has received a US$500 million credit from China that will allow for construction of the 600-MW Karuma hydropower project, sources have reported.

Construction of the $2 billion hydroelectric plant was supposed to have begun by the end of this year before the project stalled due to a lack of funds.

Uganda said China's investment will be added to $700 million in established government co-financing, with the remainder to be raised from unnamed development agencies. Ugandan president Yoweri Museveni had said in April 2009 that he intended for the country to finance the project itself.

The project will be located on the Victoria Nile River near Karuma.

HydroWorld.com last reported on the plant in October 2011, when the country's Ministry of Energy and Mineral Development was soliciting consultants to serve as project manager for its construction.

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