The Ministry of Electricity and Energy has announced the establishment of an Egyptian company for electricity generation in Uganda.
On Tuesday, Minister Hassan Younis told reporters in the Ugandan capital Kampala that the new company will support the country's power network through providing an extra 1000 megawatts. Procedures for establishing the company will start early next year.
Younis added that an Egyptian firm will build a 700-megawatt hydro-electric station in the Nile basin country. He also pointed to a US$100-million plan to construct three factories for producing electricity with the assistance of an Egyptian company.
Analysts believe that Egypt, through fostering ties with Uganda, is seeking to tease the latter away from an agreement it signed with Ethiopia, Tanzania, Kenya and Rwanda this April in Entebbe, Uganda, which dealt with redistributing shares of Nile water, posing a threat to Egypt's historical portion.
Egypt, which boycotted the meeting of the Nile basin countries along with Sudan, said it is not bound by the new deal.
