Why Karuma Dam is struggling to take off
Uganda's 600MW Karuma hydropower dam is struggling to reach its full potential due to operational inefficiencies, revenue disputes, and maintenance delays. Despite being a flagship clean energy project, the plant faces ongoing issues with debris and missing spare parts from the contractor.
Why it matters
Infrastructure projects in developing nations often face significant hurdles in maintenance and management, impacting national energy security and economic goals.
The 600MW Karuma hydropower dam is one of investments the government has in the recent past peddled in pushing its push of clean energy. PHOTO | TOBBIAS JOLLY OWINY
When the Karuma Hydropower Project (KHPP) achieved its substantial completion in June 2024, the government issued the contractor, Sinohydro Corporation Ltd, a completion certificate to mark the start of commercial operations.
To date, the plant has generated a total gross energy output of 2,624,330 MWh and net energy output of 2,609,533 MWh, translating to approximately Shs478.2b in revenues.
Yet there is no shortage of deficits. Business Outlook has established that besides the plant failing to achieve its full potential of generating 600MW, it is also struggling to meet its revenue targets. This is due to increased revenue discrepancies between the Uganda Electricity Generation Co Ltd (UEGCL) and the Uganda Electricity Transmission Co Ltd (UETCL).
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