Uganda is inviting bids from contractors to build a hydropower plant that will produce up to 700MW and cost about $900m, according to the country's energy ministry.
The Karuma Falls project includes a 600-700MW hydropower facility with an underground power station housing five turbines, Reuters has reported.
Energy Minister Hilary Onek told Reuters that ordinarily, 1MW should cost $1m, but other expenses have raised the cost of the project.
"So for the Karuma dam, which will be about 700MW, we're estimating it will cost about $900m," Onek said.
Work on the plant, to be built on the River Nile, will begin in 2011 and will include planning and engineering, civil construction including supply of equipment and materials and installation of hydro-mechanical and electro-mechanical equipment.