The World Bank is helping the Ugandan government mobilize funds for the construction of two power dams in a bid to increase the power production in the east African country.

The Executive Director of Uganda Investment Authority, Maggie Kigozi, was quoted by local media as saying on Wednesday that the bank is mobilizing funds to construct two dams at Bujagali and Karuma along River Nile.

"The World Bank has assured the government that as soon as the financial closure (mobilization of funds) of 350 million US dollars for the construction of a dam at Bujagali is completed, they will immediately start looking for funds for construction of Karuma dam," Kigozi said.

She said the new developments follow the setting up of the Presidential Investors Roundtable (PIRT) by President Yoweri Museveni to identify obstacles to investment.

"The PIRT identifies a power shortage and advised that both dams be developed at the same time because the power deficit in the country is high with only 5 percent of the Ugandans having electricity," said Kigozi.

Investors in the east African country continue to complain of frequent power load sheddings which limit their industries from operating at an optimum level.

They noted that an alternative sources of power like diesel generators are expensive and push up their production costs.

Recently, the government hired thermal generators to increase the production of power but it is still overwhelmed by the demand for electricity.

Source: Xinhua