US-based Albatross Energy said it plans to build a 230MW thermal power plant in Uganda.
The firm will build the station on the existing equipment of a smaller plant to implement the project in a short time, executives of Albatross Energy told the Ugandan president.
President Yoweri Museveni told Dow Jones that the costs of power generation would fall, after the country starts using its own oil and gas for power generation.
The project is expected to be completed in 18 months.
Uganda has been suffering from power shortages since 2005 due to reduced power generation at the country's main hydropower station.