bujagali hydropower project


The Bujagali Hydropower Project will produce substantial benefits for the Ugandan national economy and local communities near the site. In addition to direct benefits -- new jobs, lower electricity costs, etc. -- the project will stimulate increased economic activity, producing important "macro" benefits for the national community.

National benefits for Ugandans

When completed, the project is expected to provide a significant boost to the Ugandan economy by sharply reducing the country's current power deficit and significantly reducing the present use of expensive and polluting oil fired thermal power generation. The Bujagali Hydropower Project will support economic growth and job creation as well as enhance the competitiveness of Ugandan goods both regionally and internationally. The project is also expected to meet the anticipated near-term increase in energy use in Uganda, estimated at 30-40 MW per year.

The project's principal macro benefits for Uganda include:

  • New supply of clean, reliable energy
  • Lower electricity costs
  • Reduced electricity rationing
  • Increase in economic investment and national income
  • Increase in export revenues
  • Possible support for rural electrification programs
  • Income from the sale of carbon credits

Improving local communities

The facility is benefiting the residents and economies of local communities near the project site. New jobs, primarily unskilled and semi-skilled, are creating employment opportunities for Ugandan workers. In addition to improving the local economy, we're committed to preserving the heritage and cultures of nearby villages. Meetings with the Kingdoms of Buganda and Busoga are helping us identify actions needed to fulfill that commitment.

An estimated 1,000 - 2,000 workers will be employed at peak times during the four-year construction period. In recruiting workers, our project team is giving preference to local residents living in the area near the project. This increase in employment will stimulate the local economy, leading to investment in new and existing businesses and additional job opportunities for local residents.

Bujagali Energy Limited is committed to providing additional sustainable benefits, primarily for the local region affected by the project. Our Community Development Action Plan supports long-term development initiatives on both sides of the river: Wakisi Subcounty (west bank) in the Mukono District and Budondo Subcounty (east bank) in the Jinja District.

We hope to invest as much as $2.4 million in community action initiatives. The major features of our community development plan include:

  • Improve local facilities, such as:
    • Enhanced water supply
    • Better schools
    • Enhanced health care facilities
  • Support sustainable economic development through:
    • Enhanced job creation and worker training
    • Improved agricultural productivity and marketing
    • Promotion of other business activities
    • Enhanced fishing activity
    • Support for vulnerable people
    • Tourism initiatives

Further assessment and additional consultations with community leaders and the affected villages are planned before these initiatives are finalized.