Tanzania and Uganda have signed a memorandum of understanding to undertake the development and operation of a 16MW hydropower project on the Kagera river that divides both countries.

The Kikagati-Murongo power plant will be situated in Kikagati in southern Uganda while the reservoir will cover both countries, providing 8MW of electricity each to Kikagati and Murongo in north-west Tanzania to the west of Lake Victoria.

The project, which is expected to begin in early 2012, is to be connected to the grid at Kikagati and will include an electrification programme in Murongo which does not have its own electricity supply.

The agreement was signed on 12 September by Tanzania