The world bank group has finally concluded plans to release$360 million(612billion shillings) to implement the construction of the 250 mega watt power dam in the eastern town of Jinja in Uganda,paving the way for the prject to start in earnest.

The final deal was signed on december 21 and takes immediatee effect,according to the statement by the world bank country manager for Uganda ms Grace Yabdrudy.

'We the close of contract negotiations between the Bujagali Energy Limited(EBL)and the projects"s commercial investors as an example of partnerships that can make a difference in uganda"s and africas development",the statement said on friday.
It added "THE 250 mw project on the Nile river is an integral component of Ugandas stratergy to close an energy supply gap that seriouslyconstrains the countrys social and economic development.

"The dam is expected to bring a more reliable and accessible power supplies that will help create jobs,reduce poverty,and improve quality of life".
Once commissioned in 2011,the run-of-river hydropower plant will increase the supply to national power grid at the lowest cost compared to other power generation expansion options under Uganda,s energy sector.

The world Bank Group,s financial support comprises $130million(Shs221billion)in loans to the bel;a partial risk quarantee of up to$115million(Sh195.5billion)and an investment quarantee of up to$115million(Sh195.5billion).

VITAL DAM

Officials said the dam is an important element in Uganda,s stratergy to develop a relaible and accessible electricity sector,which is critical for the countr,s economic growth and development.
"The international Financial Corporation(IFC)is pleased that work on the project has commenced ,as it is expected to reduce power shortage as well as carbondioxide emissions in Uganda,thus lessening the need for more expensive thermal power,"said Mr Rashad Kaldany,IFC,s director of infra structure.

The Bujagali Hydropower project is one element of the World Bank Group,s support for Uganda,s energy sector stratergy.
Other development projects being supported include a power sector Development Operation$300 million(Sh510 billion)that provides funding for a set of investoments and policy measures desidned to reduce the supply-demand gap untill the Bujagali hydropower plant comes into service.
This is a very positive and promising future for the investment opportunity in this pearl of Africa(Uganda).With a steady and sustainable power supply,industalisation of Uganda is certainly a very big realisation.
Chris in kampala Uganda.