THE week, the World Bank board will sit to decide whether to go ahead with the funding of the 250MW Bujagali dam project. Although the bank is expected to lend the project about $150m (sh258b) towards the dam’s $750m (sh1,290b) total cost, the World Bank’s approval expected this Thursday is the catalyst that will see other lenders falling in line to support the project.
We have been here before. In 2002, the bank’s board was one step away from approving the project but was scuttled by allegations of corruption by a senior Ugandan minister and financial distress suffered by American power firm AES Nile Power, the project promoters.
In addition, the current project is not only supported by the Aga Khan’s investment arm IPS, but also by the largest private equity fund in the world, the Blackstone Group through its subsidiary the Sithe Group.
Study after study has shown that the Bujagali dam is the least-cost project. In terms of population dislocation and the dam’s reservoir, which will cover less than 100 hectraes, the environmental and social disruption from this project is easily containable.
In addition, hydro-electricity is the most environmentally-friendly energy source.
Ismailimail 