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The report assesses climate change risks for the Mpanga River catchment, focusing on the AEMS-Mpanga hydroelectric plant and water supply for domestic, industrial, and agricultural use. It finds that energy production is more vulnerable than water supply, with potential annual welfare costs from electricity shortages reaching US$98 million by 2035-2040. While water shortages in the Rushango area could cause annual losses up to US$188,000, the energy sector's losses dominate. Adaptation measures, such as improved water resource regulation and catchment protection, are deemed cost-effective, requiring only marginal reductions in losses to yield positive returns. However, implementation is hindered by funding gaps, lack of political will, and poor river flow data.