Buseruka Hydropower Plant

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In May 2009, the US$27 million 9MW Buseruka hydropower plant project reached financial closure under a 30-year BOT agreement. The sponsor was Ugandan private company Hydromax Limited. The project was awarded by the government of Uganda by direct negotiation in May 2008, when the Electricity Regulatory Authority (ERA) issued a 30-year generation license to Hydromax to develop the 9MW mini-hydropower project at Buseruka Gorge in Hoima. Under the term of the agreement, almost all of the power would be sold into the national grid, although about 1% would be sold directly to the local community in Hoima. The project was financed as follows: - US$8 million equity from the sponsor Hydromax Limited - US$10 million loan from PTA Bank - US$9 million loan from AfDB Construction was expected to be completed in 2010.