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dam-l Uganda tries to export power to Kenya/LS




Uganda's Second Power Supply Delayed by Talks

( April 07, 2000 )


Kampala (The East African, April 7, 2000) - The licensing of a second
independent hydro-electric power producer in Uganda will depend on how soon a
power purchase agreement is concluded with Kenya, say Ugandan officials. The
two countries are trying to reach an agreement but progress is slow, with Kenya
saying it wants to be convinced that Uganda has the capacity to supply
contracted quantities.

      Besides the two Jinja dams, a third privately owned, has been licensed
downstream of the Owen Falls dam.

      A Norwegian company, Norpak, also wants to build a 200mw power station at
Karuma in northern Uganda. However, officials say the project, whose
environmental impact assessment has already passed the test, cannot be given
the go-ahead until an agreement for additional power imports is struck with
Kenya.

      "We have started negotiations with Kenya and there are good indicators
that we are going to reach an agreement. After that, there is no reason why
Karuma cannot come very fast," said Mr. Godfrey Turyahikayo, Uganda's
commissioner for energy.

      According to load forecasts by the Ugandan and Kenyan power utilities,
Kenya will need an extra 165 megawatts of electricity above its current needs
in 2004. A year later, the figure will have risen to 295 megawatts.

      Uganda says it would like to supply either all that excess demand or a
significant portion of it because Kenya's options are limited to either
importing the energy to meet the increased demand or build more thermal
stations using fossil fuels. The latter option is considered unattractive
because of its high economic and environmental costs.

      While conceding that power imports from Uganda would be cheaper, Kenya is
reported concerned that, as is happening with the existing contract under which
Uganda is obliged to supply 30mw daily, her neighbour may not guarantee supply.


      Uganda's power exports have been intermittent because of a huge deficit
in the domestic supply during peak, meaning Kenya only gets power from Uganda
for only part of the day.

      A second power station, the 200mw Owen Falls Dam extension, starts in
June with an initial 80mw. When fully operational in 2002, it will produce at
least 390mw, a figure that will rise to 640mw when the independent privately
built 250mw AES Nile power station at Bujagaali starts operation in 2004.

      Even the increased generation, however, will not solve the domestic
deficit immediately because anticipated new demand likely to result from grid
extension and new industrial projects just waiting for adequate power supply.






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      Lori Pottinger, Director, Southern Africa Program,
        and Editor, World Rivers Review
           International Rivers Network
              1847 Berkeley Way, Berkeley, California 94703, USA
                  Tel. (510) 848 1155   Fax (510) 848 1008
                        http://www.irn.org
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::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
      Lori Pottinger, Director, Southern Africa Program,
        and Editor, World Rivers Review
           International Rivers Network
              1847 Berkeley Way, Berkeley, California 94703, USA
                  Tel. (510) 848 1155   Fax (510) 848 1008
                        http://www.irn.org
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