Govt asks for sh197b for Bujagali
Apr 22, 2007
THE Government has requested for $115m (about sh197b) from the international Development Agency (IDA) as risk guarantee for the Bujagali hydropower project.
By Cyprian Musoke
and Joyce Namutebi
THE Government has requested for $115m (about sh197b) from the international Development Agency (IDA) as risk guarantee for the Bujagali hydropower project.
Tabling the request before Parliament on Thursday, the state minister for planning, Omwony Ojok, said the money would guarantee a loan to be accessed by the private developers undertaking the project.
He said the government was obliged to cover the lenders from any risk on debt servicing arising from eventualities like changes of government, policy or administration.
“A consortium of private developers has approached lenders who have agreed to lend them the money. they (lenders) are asking government for a guarantee against political risk or change of policy that may affect their money.â€
It is estimated that the dam will generate 250MW of electricity.
Ojok said the government would proceed with the project to alleviate the energy shortage through environmentally-sound technology that will generate electricity at the lowest overall cost to Ugandan consumers.
The Government also requested for $30m from IDA for the power sector development programme and a loan of $30m from the export and import Bank of China to set up the National transport infrastructure board.
and Joyce Namutebi
THE Government has requested for $115m (about sh197b) from the international Development Agency (IDA) as risk guarantee for the Bujagali hydropower project.
Tabling the request before Parliament on Thursday, the state minister for planning, Omwony Ojok, said the money would guarantee a loan to be accessed by the private developers undertaking the project.
He said the government was obliged to cover the lenders from any risk on debt servicing arising from eventualities like changes of government, policy or administration.
“A consortium of private developers has approached lenders who have agreed to lend them the money. they (lenders) are asking government for a guarantee against political risk or change of policy that may affect their money.â€
It is estimated that the dam will generate 250MW of electricity.
Ojok said the government would proceed with the project to alleviate the energy shortage through environmentally-sound technology that will generate electricity at the lowest overall cost to Ugandan consumers.
The Government also requested for $30m from IDA for the power sector development programme and a loan of $30m from the export and import Bank of China to set up the National transport infrastructure board.