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25th July 2013

Bugoye Job Creation Study

Between 9,704 and 11,534 jobs were created by the Bugoye Hydro Power Plant according to the latest study by the ODI (Overseas Development Institute) which assessed the net direct, indirect and induced employment effects of the plant. Operational since 2009, nearly one million people are served by this renewable power source.

In line with its ongoing commitment to monitor the development impact of all projects that it supports, PIDG commissioned the ODI to undertake a pilot job creation impact study of the Bugoye Hydropower Plant (BHPP) in Uganda.  BHPP is part of the Emerging Africa Infrastructure Fund (EAIF) portfolio.

The primary purpose of study was to assess the net direct, indirect and induced job creation, which could be attributed to the construction and operation of BHPP and to develop a methodology for future use on other projects. The study also considered the impact of BHPP on the power sector in Uganda, wider economic and social impacts, and the importance of EAIF’s involvement in the project.

The study found that ‘the estimated total employment effect of BHPP is between 9,704 and 11,534 jobs’. On top of this, it continues to say that ‘Significantly more jobs are created through the effects of improved reliability of electricity supply’ (pg.39).

BHPP has demonstrated that, with the co-operation of sources of finance, a private sector operator can successfully finance, build and operate a small hydropower plant in Uganda. The project’s emphasis on high standards of social and environmental performance and, in particular, its participatory and consultative approach to implementation is already being looked to as a model for other projects in Uganda.

See the PIDG Bugoye Case Study for further details of the project and EAIF’s involvement