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Building Hydropower Plants in Uganda: Who is the Best Partner?

Uganda has long been plagued by chronic power shortages. Determined to boost the country’s economic growth, Ugandan leaders have decided to build two large-scale hydropower plants at Karuma (600MW) and Isimba (183 MW). Irene Muloni, the head of the nation’s Ministry of Energy and Minerals Development (MEMD), has two options for financing and building the hydropower facilities: either to build the dams as independent power projects (IPPs), or to accept Chinese financing and contract with Chinese construction companies. Muloni has to weigh the advantages and disadvantages of each option before making a final choice. The case examines this decision making process.

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