Bugala Power Station

Bugala Power Station is a 1.5 MW biodiesel-fired thermal power plant located on Bugala Island, in Kalangala District, in the Ssese Islands Archipelago, in Lake Victoria, in southcentral Uganda.

Location

The power station is located on Bugala Island, the largest island in the Ssese Island Archipelago, in Kalangala District, in Lake Victoria, Africa's largest fresh-water lake, in Uganda's Central Region. This location is near the town of Kalangala, where the district headquarters are located, approximately nautical 51 kilometres (32 mi), by water, southwest of the town of Entebbe, on the mainland.^[1] The coordinates of the power plant are: 00 18 36S, 32 12 54 (Latitude:-0.3100; Longitude:32.2150). The coordinates are tentative because the power station does not yet appear on most publicly available maps.

Overview

Bugala Power Station is integrated in design and construction with the palm oil processing plant owned by Bidco Oil Refineries Limited. Bidco owns a 6,500 hectares (16,000 acres) palm oil plantation on Bugala Island, where the power station is located. The oil processing factory crushes the palm oil fruits into crude palm oil. During the process, heat is generated, which is used to boil water, creating steam. The steam is used to turn turbines and create electricity in the process. The electricity is used within the factory and any excess is sold to the neighboring town of Kalangala.

Construction of the power station is complete and commissioning will take place during the first week of March 2010. The joint power plant and oil processing factory is a joint effort between the Ugandan Government, the International Fund for Agricultural Development (IFAD), the World Bank and Oil Palm Uganda. Oil Palm Uganda is a consortium between Wilmar International, a conglomerate that specializes in the development of agricultural plantations and Bidco Oil Refineries Limited, an oil processing company.^[2]

Uganda Palm Oil Project

Bugala Power Station is a byproduct of the Uganda Palm Oil project. The project will be co-funded by Oil Palm Uganda which will provide US$120 million, while IFAD will give a loan of US$19.9 million. The Government of Uganda will contribute US$12 million for land, electricity and roads. Local farmers will contribute US$3.16 million through labor, equity and land. The power station and oil processing factory have cost US$10 million to construct. Bidco already maintains a palm oil refinery in Uganda, located in Jinja, Uganda's second industrial city. As of July 2011^[update], the acreage under palm trees by outgrowers, has grown to over 2,080 hectares (5,100 acres). The target of 4,000 hectares (9,900 acres), under palm trees by outgrowers is expected to be attained in a few more years.^[3]

The investment profile of the Uganda Palm Oil Project is summarized in the table below: ^[4]