Court stays off thermal plant award indefinitely
Jun 11, 2007
THE High Court has indefinitely stayed off the award of a 50MW heavy fuel thermal plant at Namanve until the final ruling. It did not, however, state the date for the final ruling, creating fear for further delays in the project implementation.
By Ibrahim Kasita
THE High Court has indefinitely stayed off the award of a 50MW heavy fuel thermal plant at Namanve until the final ruling. It did not, however, state the date for the final ruling, creating fear for further delays in the project implementation.
The Electricity Regulatory Authority (ERA) had awarded the tender to Norwegian firm, Jacobsen Electro, to build the plant.
The Court decision follows an interim order that a rival company, Electro-Maxx, applied seeking justice on the tendering process.
“The interim order issued on the 2nd day of April, 2007 in this application to restrain the Respondent (ERA), its agents, representatives and/or employees from granting/issuing/awarding the Independent Power Producer licence to Jacobsen Electro AS for the generation and sale of 50MW of thermal power be extended from the 8th day of June, 2007 until the delivery of the ruling in Miscellaneous Application No 200 of 2007 on notice,†read the order.
Electro-Maxx dragged ERA to Court because the electricity disputes tribunal failed to review and re-evaluate its bids to determine whether it was the cheapest and most responsive compared to Jacobsen’s bids.
The local firm described as false ERA’s claim that Jacobsen’s bid was cheaper in project cost, tariff and shorter in implementation.
A source said awarding the tender to Jacobsen would cost the consumers an extra $30m which will be paid in six years.
The decision comes at a time when Jacobsen had already entered into a Power Purchase Agreement with the Uganda Electricity Transmission Company.
This would pave way for ERA to award a licence to generate and sale electricity to the national grid.
But the order now means that Jacobsen cannot go ahead with the project until it is resolved in Court.
In February last year, ERA invited bidders to build, operate and transfer a 50MW heavy-fuel oil plant at Namanve. The project was expected to be operational in June 2006.
Jacobsen Electro, Electro-Maxx and African Power Initiative responded to the invitation. ERA awarded the deal to Jacobsen.
However, Electo-Maxx disputed the award and protested to the IGG. Citing irregularities and illegalities, the IGG overturned the award.
The project was aimed at providing emergency power before the 250MW Bujagali hydropower project is commissioned in 2011.
THE High Court has indefinitely stayed off the award of a 50MW heavy fuel thermal plant at Namanve until the final ruling. It did not, however, state the date for the final ruling, creating fear for further delays in the project implementation.
The Electricity Regulatory Authority (ERA) had awarded the tender to Norwegian firm, Jacobsen Electro, to build the plant.
The Court decision follows an interim order that a rival company, Electro-Maxx, applied seeking justice on the tendering process.
“The interim order issued on the 2nd day of April, 2007 in this application to restrain the Respondent (ERA), its agents, representatives and/or employees from granting/issuing/awarding the Independent Power Producer licence to Jacobsen Electro AS for the generation and sale of 50MW of thermal power be extended from the 8th day of June, 2007 until the delivery of the ruling in Miscellaneous Application No 200 of 2007 on notice,†read the order.
Electro-Maxx dragged ERA to Court because the electricity disputes tribunal failed to review and re-evaluate its bids to determine whether it was the cheapest and most responsive compared to Jacobsen’s bids.
The local firm described as false ERA’s claim that Jacobsen’s bid was cheaper in project cost, tariff and shorter in implementation.
A source said awarding the tender to Jacobsen would cost the consumers an extra $30m which will be paid in six years.
The decision comes at a time when Jacobsen had already entered into a Power Purchase Agreement with the Uganda Electricity Transmission Company.
This would pave way for ERA to award a licence to generate and sale electricity to the national grid.
But the order now means that Jacobsen cannot go ahead with the project until it is resolved in Court.
In February last year, ERA invited bidders to build, operate and transfer a 50MW heavy-fuel oil plant at Namanve. The project was expected to be operational in June 2006.
Jacobsen Electro, Electro-Maxx and African Power Initiative responded to the invitation. ERA awarded the deal to Jacobsen.
However, Electo-Maxx disputed the award and protested to the IGG. Citing irregularities and illegalities, the IGG overturned the award.
The project was aimed at providing emergency power before the 250MW Bujagali hydropower project is commissioned in 2011.