Germany is to fund construction of the proposed 6.5MW Maziba hydroelectric power dam in the western district of Kabale, Prime Minister Dr Ruhakana Rugunda has said.
Rugunda told residents of Kyanamira sub-county recently that a contractor had already been secured for the $12m (Shs 34bn) project on river Maziba, 10km east of Kabale town. A 1.6MW plant built at the site in 1966 was decommissioned in 2002.
In 2009, a new positive feasibility study was carried out by Lahmeyer International, a German consulting engineering firm. Early last year, Muvumbe Hydro (U) Ltd, a subsidiary of the Sri Lankan firm Vidullanka Plc, applied for a licence to build the plant.