World Bank snubs environmentalists’ calls to delay Bujagali power project

Jul 31, 2007

THE World Bank has fended off calls by environmentalists to delay the construction of the 250 mega watts Bujagali power dam. The bank, one of the world’s largest sources of development assistance, also reiterated its commitment to the project.

By Ibrahim Kasita
THE World Bank has fended off calls by environmentalists to delay the construction of the 250 mega watts Bujagali power dam. The bank, one of the world’s largest sources of development assistance, also reiterated its commitment to the project.

“The World Bank management remains committed to the successful implementation of this project including the appropriate application of the relevant environmental and social safeguards,” Michel Wormser, the bank’s sector director for sustainable development department for Africa region, wrote.

“The project is critical to Uganda’s economic development and we will continue to work with the Government to ensure that this project meets high standards.”

The bank was responding to fresh concerns raised by the National Association for Professional Environmentalists (NAPE) and the International River Network, the local environmental lobby groups.

The environmentalists’ major concerns were the impact of hydrology and the climate on the project, fisheries, protected reserves and the inspection panel.

Frank Muramuzi, the executive director of NAPE, confirmed that he had written to the bank expressing his concerns.

He said the proposed 250 mega watts of electricity expected will not be realised because the water is not enough and that the cost of the project was “very high.”

But Wormser in response said the Bujagali project was an integral component of Uganda’s strategy to close its energy supply gap which is constraining the country’s social and economic development agenda.

“The project’s approval reflected a shared view by management and the board of the critical importance of providing a new source of electricity expeditiously to Uganda and confidence that thorough economic, environmental and social due diligence has been undertaken to identify and realise that source,” she explained.

“I note that the bank’s independent inspection panel - a World Bank accountability mechanism- subsequently recommended the executive directors approve and investigate the project.”

Wormser noted that following an inspection panel case related to the previous effort to develop the project, the bank’s management prepared and the board approved, an action plan that addressed environmental and social concerns raised at the time, which have been taken into account in the preparation of the more recently approved project. She observed that NAPE’s concerns have been reviewed and responses provided publicly on www.worldbank.org/bujagali.

Wormser explained that the project would not only reduce power tariffs “but also allow for the elimination of subsidies to the sector which currently represent about one-third of the sector costs and are ultimately borne by all Uganda taxpayers.”

“The Government of Uganda has reaffirmed its position that environmental conservation is a part of the overall framework for the construction of the Bujagali hydropower project and the Government’s continued commitment to obligation meant to compensate for the environmental and social effects of the proposed Bujagali project,” she assured.

“This commitment includes developing and adopting a sustainable management programme, which is mutually agreeable to both the Government and the Bank.”

Wormser asserted that as per the World Bank standard operating procedures, staff will supervise the implementation of the project during the active period of the agreements.

The Bujagali dam project has dragged on since the early 2000 due to environmental concerns among others.


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