Various government ministries, departments and agencies (MDAs) are mandated by law to help any potential investor in hydro power development in Uganda. The entity must be legal, with technical and financial capacity, together with experience in the relevant field.
The MDAs include –
- Electricity Regulatory Authority (ERA),
- National Environmental Management Authority (NEMA),
- Directorate of Water Resource Management (DWRM),
- Ministry of Agriculture, Animal Industry and Fisheries (MAAIF),
- Uganda Investment Authority (UIA), and,
- Uganda Land Commission (ULC).
The procedure ranges from a notification to ERA, it’s gazetted, stakeholders are invited for a public hearing, then a formal application is submitted and gazetted. If there are no objections from the public, license is granted. This process takes about a maximum of 180 days.
Indicative Hydro Power Development Fees:
An application for a permit to undertake feasibility studies costs USD 3,000, and an additional USD 1,000 if one wants to extend it.
Very small generators below 0.5 MW pay USD 2,500 while those between 0.5 MW and 2 MW pay USD 6,000. Their counterparts located operating from isolated grid systems are exempt from these fees.
Meanwhile, a generation license for a project between 2.0 MW and 10 MW will cost USD 12,000.