AES writes to govt on pullout
Aug 21, 2003
THE Government is looking for another investor to develop Bujagali hydroelectric power dam in Jinja, after it received communication from AES Corporation on its withdrawal from the project.
By Yunusu Abbey
THE Government is looking for another investor to develop Bujagali hydroelectric power dam in Jinja, after it received communication from AES Corporation on its withdrawal from the project.
AES, an American company, had wanted to undertake the delayed Bujagali dam project under its local subsidiary, AES Nile Power.
“It is now official. AES has pulled out of the multi-million-dollar Buj-agali project and there are no more doubts about the issue,†a source said.
“Since AES has officially notified us about its withdrawal, the Government will anytime this week issue a statement on the Bujagali project and the steps being taken,†the source said.
The source said the energy ministry was making consultations on how to appropriately handle the new development.
It is not yet clear whether the Government will go for the open tender to attract competitive bidding or opt for selective bidding (inviting particular companies to bid for the project.
Details about the AES letter could not be readily established last evening but sources said the Arlington, Virginia-based company attributed the abrupt pull out to a sharp fall in its internal revenue, among other reasons.
Other sources said AES promised to help identify an investor to develop the delayed project, which the World Bank was to co-finance.
Initially, AES had estimated the project cost at about $520m, but the Government now wants the cost to be reduced given the availability of modern equipment.
THE Government is looking for another investor to develop Bujagali hydroelectric power dam in Jinja, after it received communication from AES Corporation on its withdrawal from the project.
AES, an American company, had wanted to undertake the delayed Bujagali dam project under its local subsidiary, AES Nile Power.
“It is now official. AES has pulled out of the multi-million-dollar Buj-agali project and there are no more doubts about the issue,†a source said.
“Since AES has officially notified us about its withdrawal, the Government will anytime this week issue a statement on the Bujagali project and the steps being taken,†the source said.
The source said the energy ministry was making consultations on how to appropriately handle the new development.
It is not yet clear whether the Government will go for the open tender to attract competitive bidding or opt for selective bidding (inviting particular companies to bid for the project.
Details about the AES letter could not be readily established last evening but sources said the Arlington, Virginia-based company attributed the abrupt pull out to a sharp fall in its internal revenue, among other reasons.
Other sources said AES promised to help identify an investor to develop the delayed project, which the World Bank was to co-finance.
Initially, AES had estimated the project cost at about $520m, but the Government now wants the cost to be reduced given the availability of modern equipment.