Uganda+Infrastructure+Projects

=Sinohydro's 600 MW Karuma Dam For USD 1.65 Billion And Tibet Hima Industry Co's Upgrade Of Mobuku Power Plant Are Examples Of China's Highly Likely Continued Involvement In Corresponding PNGSM Ugandan Infrastructure Projects For The Next Five Years.=

Executive Summary:
Uganda is preparing for a greater energy need once its oil and gas resources are commercialized, creating Chinese investment opportunities in corresponding PNGSM projects such as Sinohydro's USD 1.65 billion 600 MW Karuma dam; Chinese investors are highly likely to invest in these kinds of projects for the next five years. The Karuma dam is being constructed to help Uganda provide for its eventual need for greater power, similar to the deal Tibet Hima Industry Co made when they won the USD 100 million Kilembe Mine. Tibet Hima must use part of its money to upgrade the Mobuku power plant to 12MW. Uganda is actively looking for investors for these kinds of infrastructure projects, expecting to pay off the loans once oil revenues flow in.

Discussion:
Uganda continues to favor China when it comes to building infrastructure projects; their lack of conditions when agreeing to infrastructure deals as well as China's desire to strengthen ties with Uganda creates the perfect situation for more corresponding Chinese PNGSM investments. Uganda's natural resource discoveries created a need for a stronger Ugandan energy infrastructure, leading to in September 2013 Sinohydro's 600 MW Karuma project on the Nile River costing USD 1.65 billion. Construction work occurred two weeks after the deal happened. This energy boost is directly related Uganda's need for energy to help transport and develop its oil and gas fields. Tibet Hama Industry Co won the development of Kilembe Mines, and as part of the deal they must upgrade the Mobuku power plant to 12 MW, energy that also will be needed once Uganda's natural resources become commercialized.

Other infrastructure investments that tie directly into Uganda PNGSM are likely to continue to occur. A bridge on the Buliisa Masindi road flooded on 4 October 2013. This road was the safest and fastest way to transport oil machinery. Opportunities like these Chinese investors will actively seek out to remain as embedded in Uganda's natural resources as possible.

Miscellaneous Infrastructure Projects
 * **Date** || **Price (USD)** || **Location** || **Key Chinese Companies Involved** || **Description** || **Corresponds To** ||
 * 5 May 2011 || 350 million || Entebbe Airport to Kampala || CCCC and China's EXIM Bank || Construction of a toll road from Entebbe Airport to the capital Kampala || Misc. ||
 * 2 November 2010 || 100 million || Uganda || Chinese Government || Upgrade and maintain Uganda's road network with 1,400 units procured || Misc. ||
 * 13 January 2009 || 106 million || Uganda || China's EXIM Bank || Construction of a country-wide e-governance project || Misc. ||

**Analytic Confidence: **
Analytic confidence for this assessment is high. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise, worked alone but collaborated with a team, and did not use structured analytic methods. The subject is moderately complex and the deadline was moderately difficult to meet.


 * Analyst**: David Bott