Govt drops Buikwe hydropower site

Feb 10, 2011

THE Government has dropped plans to build a hydro-power dam at Kalagala Falls in Buikwe. This comes after the World Bank and the European Investment Bank raised concern over the issue, saying building a dam at the falls would affect the area’s eco-system.

By Ibrahim Kasita

THE Government has dropped plans to build a hydro-power dam at Kalagala Falls in Buikwe. This comes after the World Bank and the European Investment Bank raised concern over the issue, saying building a dam at the falls would affect the area’s eco-system.

The Government and the World Bank’s private lending arm, the International Development Association (IDA), signed an agreement in 2007 to protect the falls’ natural habitat, environmental and spiritual values.

However, an energy ministry draft hydro-power masterplan included Kalagala falls as one of the seven prospective hydro-power sites.

Others are Isimba, Karuma, Ayago, Oriang, Kiba and Murchison Falls.

The World Bank and the European Investment Bank (EIB) are Uganda’s major infrastructure financiers.

Paul Mubiru, the director of energy in the energy ministry, has reassured the institutions that the Government would honour the agreement.

“It is true that we have an agreement to protect the Kalagala Falls. “There is no way we can go against it,” he said.

Jimmy Omona, a consultant who worked on the master plan, confirmed that Kalagala Falls had been removed from the list of future hydro-power sites. Kurt Simonsen, the EIB regional head, said it was good that the ministry had cancelled plans to build a power dam at the falls.

Earlier, the Government drafted a Kalagala offset sustainable management plan for 2010-2019 to address issues of eco-tourism in the area and the Mabira eco-system.

IDA committed to be a guarantor to Uganda under the IDA guarantee facility and between Bujagali Energy and financing institutions, who were lending $115m to support the financing the Bujagali power project.

The indemnity agreement is an integral component of the Bujagali hydro-power project funded by the IDA/World Bank. It provides for a sustainable management plan for the Kalagala offset, which includes the Mabira central forest reserve.

Under the plan, Uganda committed herself to protecting the fall’s natural habitat and environmental and spiritual values in conformity with sound social and environmental standards.

The agreement also tasked the Government to develop tourism activities at the falls according to international social and environmental standards.

According to the deal, Uganda pledged not to build a power dam as it would affect the ability to maintain the Kalagala Falls.




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