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Museveni regrets Bujagali financing mechanism

By Moses Walubiri

Added 26th January 2020 04:12 PM

Bujagali is a 250MW dam on River Nile, near Jinja commissioned by the President in 2012 at an estimated cost of $800m.

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Bujagali Hydroelectric Power Station became operational in 2012. File Photo

Bujagali is a 250MW dam on River Nile, near Jinja commissioned by the President in 2012 at an estimated cost of $800m.

ENERGY SECTOR

For the umpteenth time, President Yoweri Museveni has described his decision to sanction the financing mechanism of Bujagali hydropower dam as a grave error of judgment on his part.

“For Bujagali, I made a mistake of accepting expensive money without adequate consultations,” Museveni said.

resident useveni during the  national delegates conference at amboole tadium on aturday hoto by palanyi sentongoPresident Museveni during the NRM national delegates' conference at Namboole Stadium on Saturday. (Photo by Mpalanyi Ssentongo)

 

In his keynote speech to the delegates of the ruling National Resistance Movement (NRM) attending its National Conference on Saturday, Museveni attributed the high power tariffs hamstringing the manufacturing sector to the “distortions” caused by costly power from Bujagali hydropower dam.

Although Museveni noted that modernisation of infrastructure had managed to reduce the cost of doing business in Uganda, the manufacturing sector was still grappling with high power tariffs.

is ighness the ga han and resident useveni planting trees during the commissioning of ujagali dam ile hotoHis Highness the Aga Khan and President Museveni planting trees during the commissioning of Bujagali dam. (File photo)

 

Whereas power from other dams and sources on the national grid go for 5 cents per unit, the one from Bujagali, according to Museveni goes for ¢8.7 per unit.

Bujagali is a 250MW dam on River Nile, near Jinja commissioned by Museveni in 2012 at an estimated cost of $800m.

But for the last three years, the government has explored available opportunities, especially the World Bank, to refinance Bujagali with the aim of making power tariffs affordable.


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