This run-of-river hydropower plant is located in the Kasese District in Western Uganda. The Project finally achieved financial close and issued the EPC Contractor with a Full Notice to Proceed at the end of 2017.
The first few hundred metres of headrace waterway from the weir is located in particularly challenging terrain with unfavourable geological conditions and there were substantial risks of environmental damage during construction of the access road. A staged process was therefore enforced whereby the Developer was required to submit evidence of having constructed measures to minimise the risk of environmental damage in order to achieve a ‘no-objection’ from GET FiT to proceed with excavation works.
By the end of 2018, construction of the weir access road had still not been completed and designs of the upper headrace structures were still to be finalised. A substantial amount of construction works remained and several activities were critical to achieving the planned commercial operation date including construction of the weir and the upper headrace, installing the nearly 5.0 km long steel penstock which only commenced during Q4 2018, as well as construction of the powerhouse.
Given the continued delays with procurement of critical materials and equipment and the generally poor progress observed during 2018, the Developer’s planned commercial operation date in Q2 2019 appeared highly unlikely, with Q3-Q4 2019 being more realistic.
Construction of the new 55 km 33 kV evacuation line, being implemented by the Rural Electrification Agency, also remained a critical risk to the Project with construction expected to commence in Q1 2019. The risk of deemed energy will substantially increase for both Nyamagasani projects in the case of further delays in implementing the infrastructure.