IGG holds back power plant construction
AN investigation by the Inspector General of Government (IGG) into the tender process for a 50MW Heavy Fuel Oil (HFO) generating plant carried out earlier this year will delay the commissioning of the plant by at least six months, officials familiar with the project have said.
By Vision Reporter
AN investigation by the Inspector General of Government (IGG) into the tender process for a 50MW Heavy Fuel Oil (HFO) generating plant carried out earlier this year will delay the commissioning of the plant by at least six months, officials familiar with the project have said.
Less than 200MW of an installed 385MW capacity is being generated following the closure of one of two dams on River Nile after Lake Victoria water levels dropped at the beginning of this year.
Analysts project that as a result of the combined effect of persistent power cuts, drought, and rising oil prices, this year’s economic growth will fall to below 5%.
In an effort to bridge the power deficit, last year the Electricity Regulatory Authority (ERA) invited bids for the building of a 50MW HFO plant in Mutundwe. In February, Norwegian firm Jacobsen Elektro As, beat two other contenders and was invited to negotiate the deal.
However, after the announcement, the other bidders complained that Jacobsen had won the tender irregularly and applied to the IGG to investigate the matter.
People familiar with the deal say that whether the IGG upholds Jacobsen’s winning bid or calls for a whole new tender, there will invariably be more delays to the commissioning of the HFO plant.
A HFO plant requires major civil works that will include a heating unit to make the HFO usable in the generators.
“Assuming the process had remained on track, construction should have begun in April with planned commissioning at the end of the year,†the source said.
“The investigation will delay this process whether the Jacobsen award is upheld or at worse if they have to re-start the tender process, which lasts for at least four months. They have to count another two months. The minimum is another six months delay, assuming the IGG completes investigations today,†the source said.
AN investigation by the Inspector General of Government (IGG) into the tender process for a 50MW Heavy Fuel Oil (HFO) generating plant carried out earlier this year will delay the commissioning of the plant by at least six months, officials familiar with the project have said.
Less than 200MW of an installed 385MW capacity is being generated following the closure of one of two dams on River Nile after Lake Victoria water levels dropped at the beginning of this year.
Analysts project that as a result of the combined effect of persistent power cuts, drought, and rising oil prices, this year’s economic growth will fall to below 5%.
In an effort to bridge the power deficit, last year the Electricity Regulatory Authority (ERA) invited bids for the building of a 50MW HFO plant in Mutundwe. In February, Norwegian firm Jacobsen Elektro As, beat two other contenders and was invited to negotiate the deal.
However, after the announcement, the other bidders complained that Jacobsen had won the tender irregularly and applied to the IGG to investigate the matter.
People familiar with the deal say that whether the IGG upholds Jacobsen’s winning bid or calls for a whole new tender, there will invariably be more delays to the commissioning of the HFO plant.
A HFO plant requires major civil works that will include a heating unit to make the HFO usable in the generators.
“Assuming the process had remained on track, construction should have begun in April with planned commissioning at the end of the year,†the source said.
“The investigation will delay this process whether the Jacobsen award is upheld or at worse if they have to re-start the tender process, which lasts for at least four months. They have to count another two months. The minimum is another six months delay, assuming the IGG completes investigations today,†the source said.