Bujagali Sponsors Release Shs270 Billion
The Monitor (Kampala)
NEWS
March 29, 2007
Posted to the web March 28, 2007
By Elias Biryabarema & Peter Nyanzi
Kampala
THE sponsors of the 250-mega watt Bujagali power project in Jinja have released $150 million about (Shs270 billion) to kick-start the project, a top official of the project has said.
Speaking at media briefing on the progress of the project at Kampala Serena Hotel on Tuesday, Industrial Promotion Services (IPS) Head of Infrastructure Kevin Kariuki said arrangements for the release of a further $600 million to be provided under a credit facility from international donors would be finalised by end of July.
“$150 million was approved and is now available,” he said.
“The debt component of $600 million will be derived from multi lateral lenders such as the World Bank Group, European Investment Bank, Proparco, AfDB and FMO of the Netherlands. We expect that the financial closure will be completed between May and July slightly ahead of schedule.” He added, “The lenders are confident that Bujagali makes sense for Uganda.”
The project is sponsored by Bujagali Energy limited, a project specific company owned by IPS (Kenya) which is part of the Aga Khan Fund for Economic Development (AKFED) and Sithe Global Power of the USA.
The hitech project to be completed in 44 months, will comprise of five units each producing 50 MW. Mr Kariuki said the dam would be commissioned on a unit by unit basis. “As soon as the first units are completed, they will not just lie there idle,” he said.
“The electricity will be released [onto the Grid] to be consumed by Ugandans.”
Mr Kariuki, who stressed that Bujagali dam is still the least cost option for power generation in Uganda, said it will cost Ugandan consumers only 6 – 6.5 US cents (about Shs110) per unit. He said the government had offered “some incentives,” which he declined to disclose, as a way of expediting the project.
“At a level tariff of 6 to 6.5 US cents per unit compared to between 25-30 US cents (about Shs470) for current thermal power generation, the Bujagali Hydropower project clearly offers the most cost effective source of power to meet Ugandan’s development agenda,” Mr Kariuki said.
Earlier, top officials from the sponsoring companies, including Aga Khan Development Network Resident Representative Mahmood H. Ahmed, met representatives of the various diplomatic missions, government officials and Members of Parliament to brief them on the progress of the project.
Mr Kariuki said the project is expected to employ up to 1,500 Ugandans at the peak of work, generating significant income for locals that and subsequently boosting their welfare, according to Mr Kariuki, the, IPS the project’s lead sponsor.
The officials dismissed as baseless, claims that Lake Victoria might not have enough waters to support the dam.
Mr Kariuki said social and environmental assessments had been carried out up to international standards and they are working to fulfil the requirements of the National Environment Management Authority (NEMA).
“While we are open to listen to the concerns of the activists, we shall only respond to questions raised by environmentalists through NEMA,” he said.
Echoing Mr Kariuki’s sentiments, Energy and Mineral Development Minister Daudi Migereko said those “demonising the project” were wasting their time because it is in the interest of most Ugandans.
“The government of Uganda has a duty to provide power and Bujagali is one of the medium term interventions to deal with the power crisis in the country,” he said.
“We shall listen to the anti-dam lobbyists but as a responsible government we shall not stop going ahead with the development of this project.
He added, “We shall not shy away from this project.”
Ismailimail 