The China International Water & Electric Corporation broke ground on Uganda's 188-MW Isimba Falls hydropower plant earlier this week.
The project is being constructed along the White Nile River and is expected to increase the country's total installed capacity by about 25%. Construction is expected to take about 34 months.
"The electricity shortage has always been a bottleneck for the development of Uganda," Chinese ambassador H.E. Zhao Yali said during a groundbreaking ceremony. "The enhancement in the electricity sector is like the engine on a jet plane. It will boost the development of the Ugandan economy."
HydroWorld.com reported in July that the governments of Uganda and China had signed a memorandum of understanding for the project's financing, with US$500 million being provided by the Export-Import Bank of China.
The Chinese government has also invested in Uganda's 600-MW Karuma hydropower plant.