Latigo criticises govt energy policy
Aug 06, 2007
On June 7, President Yoweri Museveni delivered the State of the Nation Address. This is the response from the Leader of the Opposition, Prof. Morris Ogenga-Latigo, on the energy sector.
BY PROF. MORRIS OGENGA LATIGO
On June 7, President Yoweri Museveni delivered the State of the Nation Address. This is the response from the Leader of the Opposition, Prof. Morris Ogenga-Latigo, on the energy sector.
In spite of the apparent high GDP growth, the economy remains the country’s greatest challenge, particularly in the areas of availability of power, development of the transport infrastructure and overcoming mass poverty. Yet it seems to us that this challenge is lost on the Government.
We were most surprised that, in spite of the scandalous delays in the construction of Busunju-Hoima, Bugiri-Jinja and the Kampala Northern Bi-pass roads when funds have been available, the President chose to say nothing about them. Maybe this is an admission of defeat after so many years of false promises.
On the power supply, particularly availability of electricity, the President is once again drawing Ugandans into false comfort when the situation is really bad, and will definitely deteriorate over the short-term. On hydro-power dams, for instance, the President said: “...construction of Bujagali and Karuma Power Stations has been pursued relentlessly and consistently. For Bujagali, all negotiations are almost complete and construction has startedâ€.
While we definitely contest the above assertion, we are at least glad that the untenable pledge to build the two dams in 44 months has ended. For, even with availability of funds, we have no capacity or capability to meet such a target.
Last year, we specifically stated that: “Even when the Government talks about building Karuma and Bujagali, serious consideration must be given to the availability and transportation of cement and steel. Do we have adequate cement in the country to supply both the building industry and the dams? Surely is 44 months a practical and honest target?â€
Even before we start building Bujagali, the challenge of availability of cement has caught up with us. As we speak now, traders line up for cement, and its price has rocketed from sh18,500 to sh25,000 per bag, and is still climbing. Cement being the main ingredient in dam construction, Ugandans must brace themselves for up to a 50% increase in the cost of constructing Bujagali Dam!
The other aspect of dam construction is false optimism based on the availability of money of our own. As the road works we referred to above have demonstrated, over and above money, with corruption, lack of physical infrastructure, weak logistical capabilities, and hurried execution of projects to address reckless political promises, we have never prepared ourselves as a country for such huge projects.
So, for Bujagali Dam, rather than ride on false optimism, Ugandans must brace themselves for a long and costly delay in its construction. As if already anticipating this long delay, newspapers recently reported the Industrial Promotions Services, the lead developer of the dam, as warning its contractor, Salini Construction Company, that it will suffer a monthly or annual fine of $5m for any delay in the dam construction!
As we advised last year, instead of rushing to build two costly low capacity dams, the Government should consider first building a single large dam even at Murchison Falls, with its 650 megawatts potential, or Ayago North with its 450 MW potential. This would buy us time to better prepare to build the smaller dams in a more cost-effective manner.
On petroleum that the President referred to as “our petroleumâ€, we the opposition, do not mind the President claiming credit for the success in the oil discovery, for he truly deserves the credit. However, because we have only remained watching as outsiders when visits are made to the oil sites or thanksgiving dinners are hosted for the oil discovery, and since nobody has bothered to formally brief us on the oil, we get the impression that the expression “our oil†used by the President is of a very narrow sense and limited to the President and elements in his Government, but did not encompass us all Ugandans.
Second is our alarm at the euphoria and excessive optimism generated by the very rosy picture painted by the President on prospects that the oil discovery hold for our country. Oil has never been the magic bullet of development. In stead, when not properly handled, it has turned out to be a real curse. Have we not seen long queues for fuel, electricity shortages, and dependence on foreign food imports in oil-rich Nigeria, and more recently even in Iran? What could become of us with our weak institutions, cronyism, high-level corruption and grave neglect of agriculture?
Considering the above, we would like to counsel that, rather than rush to exploit the oil for short-term expedience, the decision on the way forward must be long-term, open, well-debated and national, and not just the preserve of a few.
We advocate for a National Petroleum Development and Use Plan that will guarantee a transparent and fair sharing of benefits with the Oil Companies, and establish a broad balance in use, both short and long-term, and in benefits to all.
On June 7, President Yoweri Museveni delivered the State of the Nation Address. This is the response from the Leader of the Opposition, Prof. Morris Ogenga-Latigo, on the energy sector.
In spite of the apparent high GDP growth, the economy remains the country’s greatest challenge, particularly in the areas of availability of power, development of the transport infrastructure and overcoming mass poverty. Yet it seems to us that this challenge is lost on the Government.
We were most surprised that, in spite of the scandalous delays in the construction of Busunju-Hoima, Bugiri-Jinja and the Kampala Northern Bi-pass roads when funds have been available, the President chose to say nothing about them. Maybe this is an admission of defeat after so many years of false promises.
On the power supply, particularly availability of electricity, the President is once again drawing Ugandans into false comfort when the situation is really bad, and will definitely deteriorate over the short-term. On hydro-power dams, for instance, the President said: “...construction of Bujagali and Karuma Power Stations has been pursued relentlessly and consistently. For Bujagali, all negotiations are almost complete and construction has startedâ€.
While we definitely contest the above assertion, we are at least glad that the untenable pledge to build the two dams in 44 months has ended. For, even with availability of funds, we have no capacity or capability to meet such a target.
Last year, we specifically stated that: “Even when the Government talks about building Karuma and Bujagali, serious consideration must be given to the availability and transportation of cement and steel. Do we have adequate cement in the country to supply both the building industry and the dams? Surely is 44 months a practical and honest target?â€
Even before we start building Bujagali, the challenge of availability of cement has caught up with us. As we speak now, traders line up for cement, and its price has rocketed from sh18,500 to sh25,000 per bag, and is still climbing. Cement being the main ingredient in dam construction, Ugandans must brace themselves for up to a 50% increase in the cost of constructing Bujagali Dam!
The other aspect of dam construction is false optimism based on the availability of money of our own. As the road works we referred to above have demonstrated, over and above money, with corruption, lack of physical infrastructure, weak logistical capabilities, and hurried execution of projects to address reckless political promises, we have never prepared ourselves as a country for such huge projects.
So, for Bujagali Dam, rather than ride on false optimism, Ugandans must brace themselves for a long and costly delay in its construction. As if already anticipating this long delay, newspapers recently reported the Industrial Promotions Services, the lead developer of the dam, as warning its contractor, Salini Construction Company, that it will suffer a monthly or annual fine of $5m for any delay in the dam construction!
As we advised last year, instead of rushing to build two costly low capacity dams, the Government should consider first building a single large dam even at Murchison Falls, with its 650 megawatts potential, or Ayago North with its 450 MW potential. This would buy us time to better prepare to build the smaller dams in a more cost-effective manner.
On petroleum that the President referred to as “our petroleumâ€, we the opposition, do not mind the President claiming credit for the success in the oil discovery, for he truly deserves the credit. However, because we have only remained watching as outsiders when visits are made to the oil sites or thanksgiving dinners are hosted for the oil discovery, and since nobody has bothered to formally brief us on the oil, we get the impression that the expression “our oil†used by the President is of a very narrow sense and limited to the President and elements in his Government, but did not encompass us all Ugandans.
Second is our alarm at the euphoria and excessive optimism generated by the very rosy picture painted by the President on prospects that the oil discovery hold for our country. Oil has never been the magic bullet of development. In stead, when not properly handled, it has turned out to be a real curse. Have we not seen long queues for fuel, electricity shortages, and dependence on foreign food imports in oil-rich Nigeria, and more recently even in Iran? What could become of us with our weak institutions, cronyism, high-level corruption and grave neglect of agriculture?
Considering the above, we would like to counsel that, rather than rush to exploit the oil for short-term expedience, the decision on the way forward must be long-term, open, well-debated and national, and not just the preserve of a few.
We advocate for a National Petroleum Development and Use Plan that will guarantee a transparent and fair sharing of benefits with the Oil Companies, and establish a broad balance in use, both short and long-term, and in benefits to all.