The 6.6MW Nyagak III hydropower plant, located on the Nyagak River in Zombo District, North-western Uganda, has been commissioned, boosting energy supply to the West Nile region that has for long been hit hard by power cuts.
Costing at least $20 million, the Nyagak III plant, which was opened by Ruth Nankabirwa, the Minister for Energy and Mineral Development, will “lead to industrial growth, improved livelihoods, and contribute to socio-economic development in the West Nile sub-region,” the minister said.
Phiona Nyamutoro, the Minister of State for Mineral Development, echoed her senior minister’s optimism, highlighting the potential to add value to minerals like gold, limestone and iron ore, which are said to occur in the region.
West Nile has for a long time suffered electricity shortages which the West Nile Rural Electrification Company (WENRECO) has struggled to address over the last two decades.
The Nyagak III project has been developed and implemented through a private-public partnership (PPP), that operated through a Special Purpose Vehicle (SPV) called GENMAX Nyagak Ltd.
The public partner here being the Uganda Electricity Generation Company Ltd (UEGCL) with 30% shares while Hydromax Ltd, together with Dott Services are the private partner holding the rest of the shares.
Not only has GENMAX been in charge of the design and construction of the plant, but it will also operate Nyagak III for a period of 20 years before handing it to UEGCL for sole management.
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