By James Odomel Friday, 2nd October, 2009 The New Vision Uganda
THE cost of Bujagali dam has not gone up, the leading co-sponsor, Industrial Promotion Services (IPS) of the Aga Khan Group, has clarified.
“The project cost was all along $860m. This comprises $568m in engineering procurement and construction cost and $292m in development, land, contingency and financing cost, including interest, among others,” said Kevin Kariuki of IPS in an interview with Saturday Vision.
He acknowledged that brittle rock was found instead of solid rock in a key area of the construction site, making it necessary to undertake redesign and remedial works. “The adverse ground conditions only became apparent following investigative drilling after dewatering of the river’s left channel.” However, he said, this would be addressed within the agreed project cost, using the contingency allowance.
Ismailimail 