World Bank has not slammed Bujagali dam! Instead it has okayed it!

SIR— On behalf of AES Nile Power, I am responding to The Monitor article entitled, “World Bank report slams Bujagali dam” by Allan Kamagara. This prominent article is inaccurate. Its title claims that the project was condemned by the World Bank Inspection Report. Actually, the Inspection Panel Report largely affirms the project by stating, “The Bujagali Environmental Assessment and the suite of seven documents that report the project-specific environmental impacts are, in the panel’s view, of high quality. All aspects of the project appear to have been thoroughly addressed. The views of project-affected groups and NGO’s have been sought and taken into account. IFC and IDA staff have been active in guiding the assessment process and in ensuring that IDA requirements for project-specific EAs have been accommodated.”We are confident that the World Bank Group management will handle any minor deficiencies asserted by the report, and the board will allow this vital investment to proceed.The article further claims: “Dam to double power price.” The author fails to appreciate that the Bujagali hydro project is Uganda’s least-cost options and one of the most environmentally benign energy alternatives as repeatedly verified by numerous public studies. Yes, like fuel and many other costs, prices go up when a shilling depreciates. Should this basic macro-economic reality terminate Uganda’s opportunity to end its energy crisis with the least-cost energy option? Foregoing clean, least-cost hydro power and relying on the next option, prohibitively expensive thermal power will require massive importation of fuel which is the fastest way to depreciate the shilling and increase prices throughout the economy.The real question not asked by project opponents is: Can Uganda afford to go without this least-cost power option? Uganda is working hard to attract investment so that it can create jobs and take care of many pressing social needs. The biggest challenge the country faces is lack of electricity. Indeed, a World Bank survey of businesses in Uganda revealed that the lack of reliable power is the major deterrent to investment. Every year, over 12 weeks of production are lost to power cuts. That means Ugandan workers find themselves out of work — and unpaid — for nearly three months of every year. The Bujagali hydro project will help meet the growing power demands of Ugandan business. It is also an integral part of the rural-electrification expansion underway. Even those who cannot individually gain access to power will benefit through the improved health care, jobs and education facilities made possible by this power source. While we acknowledge that the Bujagali project is not a panacea for all of Uganda’s problems, it is certainly a critical investment.The project reaches the final stage of approval following six years of in-country and international consultation where the Parliament, the 96% of NGOs, the local residents, the cultural kingdoms, and Ugandans at large have expressed support for Bujagali moving forward. For this reason, we are committed to proceed with the project in order to serve the clear energy needs of the Ugandan people.Sarah BirungiAES Nile Power