India to fund $450mil Isimba power project - Uganda

[Mech]

India to fund Isimba power project
By Raymond Baguma

The Indian government is to finance the construction of the 180 megawatt (Mw) Isimba hydropower project with a $450m loan to boost Uganda’s power generation.

Isimba will be the fourth largest hydropower project in Uganda. Other projects are 600Mw Karuma dam, the 600Mw Ayago power station and the 250Mw Bujagali power project that was switched on last year.

Recently, a bilateral meeting between Uganda and a delegation from India led by the country’s minister of external affairs, Salman Khurshid, was held at the Speke Resort Hotel Munyonyo.

The Indian delegation also included Sanjay Sudhir, the joint secretary from the external affairs ministry and Prabhat Kumar, the joint secretary for energy security.

The Ugandan delegation included ministers Amelia Kyambadde (trade), Dr. Ruhakana Rugunda (ICT) and Uganda’s high commissioner to India Nimisha Madhvani.

Khurshid noted that Uganda is an emerging oil and gas producer, with a growing population of young people who have the potential to change their livelihoods.

Khurshid said in ICT, India will exchange with Uganda E-government modules in software, training and set up IT institutions.

He added that India wants to participate in the processing and exploration of Uganda oil and gas, train Ugandan oil professionals and invest in the petrochemical industry.

Khurshid said India will fast-track the establishment of the India-Africa institute of foreign trade in Uganda and set up a food processing industry incubation centre. The country will also join a private sector partner to avail agriculture equipment to farmers who lack the capacity to purchase modern farming equipment.

Kutesa said India will cooperate with Uganda in the development of energy, ICT, defence and security and agriculture and food processing sectors.

He urged Ugandans to enter the Indian duty-free and quota-free market by taking advantage of the country’s initiative to open its market to 187 products from Africa.

According to the Indian ministry of commerce, the volume of trade between Uganda and India stands at $450m, with India exporting to Uganda goods worth $430m. Uganda exported goods worth $25m to India in 2012.

India to fund Isimba power project

 

[Srinivas]

Nice to see India helping African Nations

 

[Ayush]

we need to expand our influence...

africa is rich in minerals..

 

[IndoCarib]

Great. Help them and tap their rich natural resources. Win Win situation for both.

 

[Bobby]

good news for both countries

 

[MilSpec]

I have a very hard time understanding this stuff... Half the country is in drought, irrigation is abysmal, there is scarcity of schools, and we are funding projects in Uganda.... our priorities are way too skewed !!!

 

[arp2041]

I have a very hard time understanding this stuff... Half the country is in drought, irrigation is abysmal, there is scarcity of schools, and we are funding projects in Uganda.... our priorities are way too skewed !!!

Or maybe this is the one thing we are doing RIGHT.

There is no doubt that India's population is on the rise & will soon become the largest in the world.

But than where are the resources for such a large population??

This is where Africa, Which is rich in Agriculture, minerals & oil comes into picture.

Certainly our HD Indexes are low but to stop them from becoming WORST in the near future, we have to make Investments in other regions (Not to mention the China Factor in Africa).

This has become the need of the hour.

 

[third eye]

I have a very hard time understanding this stuff... Half the country is in drought, irrigation is abysmal, there is scarcity of schools, and we are funding projects in Uganda.... our priorities are way too skewed !!!

What is difficult to understand ?

There is no shortage of funds in India - there is an acute shortage of honest men who will ground apply the funds in a honest manner.

Next, such funding of projects is not a blank cheque for the recipient to spend as deemed necessary . The projects are to be executed by agencies / arms of the Govt who provides the loan. Indian money therefore gets spent by the Ugandans on Indian PSUs / Firms who execute the work abroad.

Its a win- win for all . The Recipient gets a project on loan, the Companies of the loan provider get experience, global presence and Good will all around.

This is how 98 % of aided projects work.

 

[MilSpec]

Or maybe this is the one thing we are doing RIGHT.

There is no doubt that India's population is on the rise & will soon become the largest in the world.

But than where are the resources for such a large population??

This is where Africa, Which is rich in Agriculture, minerals & oil comes into picture.

Certainly our HD Indexes are low but to stop them from becoming WORST in the near future, we have to make Investments in other regions.

This has become the need of the hour.

Very noble thought if that indeed is the plan. I highly doubt that Indian establishment has such incredible foresight, where India is looking to leverage african potential. Apart form that, geopolitics especially in africa is exceptionally fragile and can change in a fortnight, investment in such markets to develop export potential makes sense, but helping others when your own house is on fire doesn't make much sense to me.

The future potential gains from african markets is speculation, and speculation is not a good investment!

 

[arp2041]

Very noble thought if that indeed is the plan. I highly doubt that Indian establishment has such incredible foresight, where India is looking to leverage african potential. Apart form that, geopolitics especially in africa is exceptionally fragile and can change in a fortnight, investment in such markets to develop export potential makes sense, but helping others when your own house is on fire doesn't make much sense to me.

The future potential gains from african markets is speculation, and speculation is not a good investment!

Maybe Sir, you would like to have a look at this:

Our, PRIVATE AGRICULTURAL INVESTMENTS.

GOI gives these companies huge subsidies, all agricultural produce is exported to India at minimal Import Duty.

These companies are being encouraged as GOI knows India doesn't have enough land to feed Future 1.5 Billion People.

 

[jha]

^^^ Few people just keep thrashing Indian diplomacy. Believe it or, not we are not the worst in this field.

 

[Cyberian]

Wasn't India's own creaking power infrastructure destroyed or something last year?

 

[Echo_419]

Hindi-Uganda Bhai Bhai

 

[MilSpec]

^^^ Few people just keep thrashing Indian diplomacy. Believe it or, not we are not the worst in this field.

Dear sir,
My intent was not to trash Indian diplomacy or the foriegn policy. My concern is more about increasing domestic investment and resolving our own irrigation issue. I am sure the private sector investment in this day and age of globalization is in the right direction, but funding foreign projects when our own are dangling in uncertainty is confusing for me. Thats it!

 

[arp2041]

Dear sir,
My intent was not to trash Indian diplomacy or the foriegn policy. My concern is more about increasing domestic investment and resolving our own irrigation issue. I am sure the private sector investment in this day and age of globalization is in the right direction, but funding foreign projects when our own are dangling in uncertainty is confusing for me. Thats it!

Sir, there is always a RISK in any Investment, be it on foreign land or be it on Indian Land.

We have Invested close to $2 billion in Afghanistan (Biggest Regional Donor), a country whose future is hard to predict even by there own people come 2014.

But, if these investments work out the way we want to, than it gives huge leverage for India in that country's affairs.

Take the case of this investment.

It is just a loan (from a part of our huge forex reserves) & not an aid.

Even after this we can ask for an Oil block for ONGC or demand any other things of our Interests.

Besides, we don't want to be seen losing in the race with China.

This is How Geopolitics works in 21st century, we can't be called a great power until we increase the radius of the Circle of our Influence.