Uganda has launched the construction of the ORIO mini hydropower project, an initiative expected to expand electricity access to rural communities in Western Uganda.
Spearheaded by the Ministry of Energy and Mineral Development and the Uganda Energy Credit Capitalisation Company (UECCC), the project is set to transform energy access in underserved regions while stimulating economic growth.
In many rural parts of western Uganda, electrification rates are considerably lower than the national average. While overall national grid access is reported in the range of 42–47%, rural areas can see rates as low as 10–20%. Western Uganda’s electrical situation is defined by low rural electrification, unreliable grid performance, and a heavy dependence on biomass.
The groundbreaking ceremony took place on February 1, 2025, at Rwakitandara Playground in Mitooma District. Six months after UECCC signed the Electromechanical Works Contract, Deputy Speaker of Parliament Rt. Hon. Thomas Tayebwa presided over the event, joined by national and local leaders, community members, UECCC officials, and international partners.
The project involves the construction of nine mini-hydropower plants with a combined capacity of 6.7 megawatts and a 288-kilometer distribution network across Kasese, Bushenyi, Mitooma, Hoima, Kabarole, Bunyangabu, and Bundibugyo districts. Once operational, it will provide electricity to 71,081 households and 2,300 small and medium-sized enterprises (SMEs). Construction is expected to take 24 months.
UECCC Managing Director Roy Nyamutale Baguma detailed the phased rollout, with initial work concentrated in Nchwera, Igassa, Nsongya, and Hoimo. China’s HNAC Technology Co. Ltd will oversee the civil and hydro-mechanical components, while Germany’s Ossberger GmbH will handle turbine design and electromechanical systems.
“Upon completion, the operational maintenance phase will be outsourced to a stakeholder with expertise in sustainable energy management,” Baguma said, emphasizing that the project aligns with Uganda’s long-term development agenda.
Deputy Speaker Tayebwa framed the initiative as an economic turning point. “For too long, communities have struggled with unreliable and expensive electricity, limiting opportunities for businesses, schools, and healthcare facilities. With this project, we are not just lighting homes—we are equipping hospitals, enabling farmers to process their produce, and strengthening small enterprises.”
Energy Minister Hon. Dr Canon Ruth Nankabirwa highlighted the broader strategy to expand electricity generation, reducing reliance on firewood, charcoal, and petroleum-based fuels. She noted that the initiative will connect over 376,000 people and 2,300 SMEs to a reliable power source, improving daily life and fostering economic activity.
The €13.1 million (approximately UGX 50 billion) project is financed through a grant from the Netherlands’ ORIO Infrastructure Fund, now managed by Invest International. The Government of Uganda is co-financing the initiative, with UECCC as the implementing agency.
Joost Van Ettro, Deputy Ambassador and Head of Development Cooperation at the Embassy of the Kingdom of the Netherlands, reaffirmed his country’s commitment to Uganda’s energy transition. “Through Invest International, we have contributed UGX 50 billion, covering 30% of the project, while Uganda has committed to funding the remaining portion. Reliable and affordable energy is critical to economic growth, industrialization, and essential services.”
By replacing costly and inconsistent power sources, the project is expected to boost productivity across key sectors, from agriculture to healthcare and education.