The Government of Uganda, through the Ministry of Energy and Mineral Development and the Uganda Energy Credit Capitalisation Company (UECCC), has officially broken ground for the ORIO mini hydropower project in Western Uganda.
The official groundbreaking ceremony, which took place on Saturday, February 1, 2025, at Rwakitandara Playground in Mitooma District, comes six months after UECCC celebrated a major milestone in rural electrification by signing the Electromechanical Works Contract for the ORIO mini hydropower project.
The exercise, presided over by the Deputy Speaker of Parliament, Rt. Hon. Thomas Tayebwa, was graced by community members, local and national leaders, UECCC officials, and development partners.
The ORIO mini hydropower project entails the construction of nine mini hydropower plants (with a combined capacity of 6.7 MW) and a local distribution network (288 KM) in the project area of Kasese, Bushenyi, Mitooma, Hoima, Kabarole, Bunyangabu, and Bundibugyo Districts.
At the end of the ORIO mini hydropower project cycle, it is expected that 71,081 households and 2,300 Small and Medium-sized Enterprises (SMEs) in rural Western Uganda will be connected to electricity. The project is estimated to be completed in 24 months.
According to UECCC Managing Director Roy Nyamutale Baguma, phase one of the project will include four sites: Nchwera, Igassa, Nsongya, and Hoimo. The construction will be carried out by HNAC Technology Co. Ltd from China for civil and hydro-mechanical works and Ossberger GmbH from Germany for the design and installation of turbines and electromechanical works.
“On completion of this project, we are going to outsource the operational maintenance phase to another stakeholder before these projects are done,” Baguma said.
“The project is designed to respond to governmental and regional policies, including the National Development Plan, Vision 2040, and Sustainable Development Goal 7,” he added.
According to Hon. Tayebwa, electricity is a fundamental pillar of economic growth. He added that projects like this enhance the livelihoods of people by improving energy access.
“Along with many communities in Uganda, this area has struggled with unreliable and expensive power supply, limiting opportunities for businesses, schools, facilities, and households. With this project, we are not just lighting homes; we are igniting hospitals, enabling farmers to process their produce efficiently, helping small businesses thrive, and ensuring our children have a better future,” Hon. Tayebwa stated.
Minister of Energy and Mineral Development, Hon. Dr. Canon Ruth Nankabirwa said government’s electricity generation strategy is to ensure that enough power is generated to support the transformation agenda, as the country aims to phase out practices such as using firewood, burning charcoal, and excessive reliance on petrol for transportation.
“This project will have a major impact on rural electrification in Uganda. Once completed, it will connect over 376,000 people and 2,300 SMEs to stable electricity, improving livelihoods, promoting business growth, and supporting healthcare and education. This project represents a significant contribution to Uganda’s energy goals,” Hon. Nankabirwa noted.
UECCC accessed a grant of up to €13.1 million (approximately UGX 50 billion) towards the development of this project.
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 designated implementing agency.
Joost Van Ettro, the Deputy Ambassador and Head of Development Cooperation at the Embassy of the Kingdom of the Netherlands in Uganda, stated that the project has since been absorbed by Invest International, a state-owned enterprise in the Netherlands that runs several programmes to develop public infrastructure projects contributing to a sustainable future for both people and the planet.
“Through Invest International, we have contributed UGX 50 billion, covering 30 per cent of the project, while Uganda has committed to covering the remaining portion. It is well known across the world that for economic growth, access to reliable and affordable energy is key,” Ambassador Ettro stated.
“This is essential for other programs, including industrialisation, education, and health. The Netherlands has joined other development partners working with the Government of Uganda through the Ministry of Energy to ensure access to affordable, reliable, and sustainable energy for all, in line with SDG 7,” he added.
To date, all Project-Affected Persons (PAPs) have been fully compensated, and primary residents have been resettled in newly constructed resettlement houses.
