MPs grill energy officials over dam

Mar 31, 2011

MPs yesterday put officials from the energy ministry to task to explain why the Nyagak mini hydro-power project has not been completed despite the billions of shillings injected into the project by the Government.

By Mary Karugaba

MPs yesterday put officials from the energy ministry to task to explain why the Nyagak mini hydro-power project has not been completed despite the billions of shillings injected into the project by the Government.

By the end of the 2009 financial year, the Auditor General, John Muwanga, said the Government’s disbursement to the West Nile Rural Electrification Company had risen to $4.7m (about sh10b).

Muwanga said the project was expected to be complete by June 30, 2009.

Work on the power dam had stalled for the last seven months due to financial constraints.

The rural electrification company is a special purpose firm formed by the Government and Industrial Promotion Services in Kenya owned by the Aga Khan Foundation.

The company was formed to set up a 1.5 megawatt heavy-fuel thermal plant in West Nile region to extend electricity to the region and to build another 3.5megawatt small hydropower project on River Nyagak.

“Why is West Nile in darkness yet people are ‘eating’ cash meant to be used to give them power?” asked Nandala Mafabi, the chairman of the public accounts committee.

The officials led by the energy ministry’s permanent secretary, Fred Kabagambe Kaliisa, said most of the work had been completed and the project would be completed in July.

“We are now working on expansion of the lines and a few civil works,” Kabagambe said.

Kassiano Wadri, the Terego MP, however, said: “I was in Nyagak and your explanation is different from what I saw on the ground. Unless these achievements were done within one month.”

The officials were appearing before the committee to answer queries raised by the Auditor General in a report to Parliament for the year 2009.

In the report, the auditors noted that $658,000 was disbursed to the electricity firm during the year, bringing the total disbursements to $4.7m as of June 30, 2009.

While requesting for more funds in 2009, the firm submitted its financial statement, which indicated that it spent more than the $6m committed to the project and that there was still a balance of about $4.1m on subsidy.

It also requested for an additional $1.5m to complete the project. The ministry has proposed that the Government’s contribution to the project be converted into equity.



(adsbygoogle = window.adsbygoogle || []).push({});