By Nicholas Bariyo
KAMPALA Uganda--Uganda's government plans to borrow a total of
$95 million from the French Agency for Development and the Germany
Development Bank to finance developing a hydro power plant in the
oil-rich Lake Albertine rift basin, the country's information
minister said Thursday.
Wednesday the cabinet approved the borrowing to fund the
construction of a 44.7 megawatt power plant along river Muzizi in
Hoima district, some 290 kilometers west of Kampala, Information
Minister Jim Muhwezi said in a statement.
The plant is part of government efforts to ramp up
infrastructure development in the region where U.K.-based Tullow
Oil PLC (TLW.LN), France's Total SA (TOT) and China's Cnooc Ltd.
(CEO) are developing the country's oil fields, estimated to contain
as much as 6.5 billion barrels of crude.
"Feasibility studies for Muzizi have been completed and the next
phase is construction," Mr. Muhwezi said. "Cabinet therefore
approved the government borrowing ...for financing."
Uganda's oil region is located in a remote region along its
western border with Congo and lacks infrastructure facilities
including modern roads, railways and power plants. Crude pumping is
expected to start by around 2018.
Write to Nicholas Bariyo at nicholas.bariyo@wsj.com