Karuma dam project short of cash
Apr 29, 2010
Construction of the Karuma power project in Masindi district hangs in balance due to the failure of the finance ministry to allocate sufficient funds for its implementation.
By Mary Karugaba
Construction of the Karuma power project in Masindi district hangs in balance due to the failure of the finance ministry to allocate sufficient funds for its implementation.
About sh2.8 trillion is needed for the project, which was expected to kick off in July.
The plant, part of the Government’s plan to increase power supply and rural electrification, is expected to produce 750 mega watts.
Energy state minister Simon D’Ujanga told MPs on the natural resources committee yesterday only $250m (about sh500b) is available for the dam.
“What can that little money do? I want all the money to be available because most of the contractors demand down payment,†he said.
According to D’Ujanga, the finance ministry is supposed to allocate about sh191b annually to the Energy Investment Fund for the construction of the dam and other energy projects.
The minister warned that if the money is not allocated, the country runs a risk of load-shedding.
D’Ujanga was responding to the MPs’ concern on the status of the fund and why the ministry had not utilised the money allocated to it this financial year.
Construction of the Karuma power project in Masindi district hangs in balance due to the failure of the finance ministry to allocate sufficient funds for its implementation.
About sh2.8 trillion is needed for the project, which was expected to kick off in July.
The plant, part of the Government’s plan to increase power supply and rural electrification, is expected to produce 750 mega watts.
Energy state minister Simon D’Ujanga told MPs on the natural resources committee yesterday only $250m (about sh500b) is available for the dam.
“What can that little money do? I want all the money to be available because most of the contractors demand down payment,†he said.
According to D’Ujanga, the finance ministry is supposed to allocate about sh191b annually to the Energy Investment Fund for the construction of the dam and other energy projects.
The minister warned that if the money is not allocated, the country runs a risk of load-shedding.
D’Ujanga was responding to the MPs’ concern on the status of the fund and why the ministry had not utilised the money allocated to it this financial year.