The Ugandan government has approved plans  to borrow $95 million from France and Germany  development finance institutions to fund construction of an hydro-power power plant in the oil-rich Lake Albertine rift basin.

The Wall Street Journal quoted the country’s information minister saying in a statement on Thursday that cabinet had approved the borrowing to pay for construction of a hydro power dam that will generate 44.7 megawatts of electricity.

“Feasibility studies for Muzizi have been completed and the next phase is construction,” Information Minister Jim Muhwezi said. “Cabinet therefore approved the government borrowing …for financing.”

The Lake Albertine rift basin, located some 300 kilometers from the capital Kampala, is estimated to hold more than 6.5 million barrels of crude oil and has attracted investments from U.K.-based Tullow Oil, France’s Total and China’s Cnooc.

Uganda has in recent years increased its investment in energy projects to meet growing demand for electricity. The country has an installed power capacity of about 850 megawatts, but is working on two other hydro-powered plants in Karuma and Isimba, along river Nile, with a combined generation capacity of 780 megawatts, Reuters reported.