- The 183MW Isimbi Hydroelectric Power Plant, built by China International Water and Electric Corporation, has structural issues requiring $150m to repair.
- Growing concerns over project quality and debt sustainability are forcing Ugandan authorities to re-evaluate the risks of Chinese-funded infrastructure projects.
The 183MW Isimbi Hydroelectric Power Plant, built by China International Water and Electric Corporation (CWE), has resumed full operations following emergency repairs. However, unresolved structural defects could require an additional $150 million to fix, straining relations between the Ugandan government and the Chinese contractor.
The plant, a key component of Uganda’s renewable energy infrastructure, plays a crucial role in supplying power to the national grid. Yet, its post-construction issues have exposed concerns over the quality of the project, sparking diplomatic and financial tensions between Kampala and CWE.
The Isimbi Hydropower Project was initially commissioned to support Uganda’s expanding electricity needs and reduce reliance on fossil fuels. Built under a bilateral agreement between Uganda and China, the facility was expected to be a model for sustainable energy development in East Africa.
However, just months after coming online, the plant experienced technical failures that required urgent intervention. Engineers scrambled to conduct emergency repairs, restoring output to full 183MW capacity.
While the country has addressed the immediate crisis, officials warn that underlying structural defects remain, putting the plant’s long-term reliability at risk.
According to government sources, fixing the remaining defects could cost an additional $150 million, a financial burden that Uganda is unwilling to shoulder alone. The government insists that CWE takes responsibility for the flaws, citing concerns about construction quality and contract obligations.
Ugandan energy officials have accused CWE of cutting corners during construction, leading to weaknesses in the dam structure and turbine systems. However, the Chinese firm disputes these claims, arguing that some problems stem from operational mishandling rather than construction flaws.
“The contractor must be held accountable for defects that emerged soon after commissioning. Ugandan taxpayers should not bear the cost of correcting mistakes that should have been avoided,” an energy ministry official stated.
What Does This Mean for Uganda and Africa in General?
The dispute has strained diplomatic relations between Kampala and Beijing, threatening future energy collaborations. Uganda has enjoyed strong ties with China, which has funded and built significant infrastructure projects, including roads, bridges, and other energy facilities.
However, growing concerns over project quality and debt sustainability are forcing Ugandan authorities to re-evaluate the risks of Chinese-funded infrastructure projects.
Observers warn that Uganda’s stance could have broader implications for Chinese investments in Africa. African Countries have become increasingly cautious about Chinese-financed projects, with some nations renegotiating terms or cancelling contracts over concerns about debt burdens and construction standards.
The big question remains: who will foot the $150 million bill for the remaining repairs? While Uganda insists that CWE should cover the costs, the Chinese contractor will unlikely agree without legal proceedings or diplomatic negotiations.
If Uganda finances the repairs, it could add to the country’s already significant infrastructure debt, raising concerns about the economic viability of large-scale Chinese projects. Some experts suggest that an independent technical review could determine liability and provide a roadmap for resolving the dispute.
While the Isimbi Hydropower Plant is again generating at full capacity, the underlying structural issues threaten its long-term sustainability. With millions of dollars at stake and diplomatic ties under pressure, the outcome of this dispute could shape the future of Chinese-backed infrastructure projects in Uganda and beyond.