Jacobsen finally wins sh151b thermal deal
Apr 24, 2007
NORWEGIAN firm Jacobsen Elektro AS has been cleared to construct, operate and maintain the 50MW Heavy-Fuel Oil (HFO) thermal plant at 66m euros (sh151b) after a 10-month delay.
By Ibrahim Kasita
NORWEGIAN firm Jacobsen Elektro AS has been cleared to construct, operate and maintain the 50MW Heavy-Fuel Oil (HFO) thermal plant at 66m euros (sh151b) after a 10-month delay.
Last year, the Electricity Regulatory Authority (ERA) invited bidders to build a the thermal plant at Namanve. Jacobsen, Electro-Maxx and African Power Initiative responded to the invitation, which was expected to be operational in June. The electricity authority awarded the deal to Jacobsen.
However, Electro-Maxx disputed the award and protested to the Inspector General of Government (IGG).
Citing ‘illegalities and irregularities,’ the IGG overturned the award, while President Yoweri Museveni ordered a re-evaluation of the bids.
The re-evaluation, which was conducted by the energy ministry, confirmed Jacobsen as the best bidder.
Electro-Maxx again protested the re-evaluation results, petitioned the IGG and even went to the High Court for further remedy.
The IGG complained that awarding the contract to Jacobsen would violate the Constitution, while the Commercial Division of the High Court halted the award.
In a dramatic twist, Jacobsen has entered into a Power Purchase Agreement with the Uganda Electricity Transmission Company.
The firm has already submitted an application to ERA to generate and sell power to the national grid.
It has agreed to construct the plant within a maximum period of 12 months. The plant will be operation for six years on a basis of build, operate and transfer to the Government.
The development is expected to relieve the country of the acute power shortage. Uganda requires more than 120MW of power because the hydro-power generation has dwindled to 120MW from the installed capacity of 380MW.
The Government is also in the process of finalising procurement of another 50MW thermal plant at Mutundwe.
Aggreko International is generating 100MW of thermal power, which is thrice as expensive as hydro.
However, heavy-fuel oil-powered generators are cheaper than the diesel thermal powered generators. That would reduce the cost of electricity.
NORWEGIAN firm Jacobsen Elektro AS has been cleared to construct, operate and maintain the 50MW Heavy-Fuel Oil (HFO) thermal plant at 66m euros (sh151b) after a 10-month delay.
Last year, the Electricity Regulatory Authority (ERA) invited bidders to build a the thermal plant at Namanve. Jacobsen, Electro-Maxx and African Power Initiative responded to the invitation, which was expected to be operational in June. The electricity authority awarded the deal to Jacobsen.
However, Electro-Maxx disputed the award and protested to the Inspector General of Government (IGG).
Citing ‘illegalities and irregularities,’ the IGG overturned the award, while President Yoweri Museveni ordered a re-evaluation of the bids.
The re-evaluation, which was conducted by the energy ministry, confirmed Jacobsen as the best bidder.
Electro-Maxx again protested the re-evaluation results, petitioned the IGG and even went to the High Court for further remedy.
The IGG complained that awarding the contract to Jacobsen would violate the Constitution, while the Commercial Division of the High Court halted the award.
In a dramatic twist, Jacobsen has entered into a Power Purchase Agreement with the Uganda Electricity Transmission Company.
The firm has already submitted an application to ERA to generate and sell power to the national grid.
It has agreed to construct the plant within a maximum period of 12 months. The plant will be operation for six years on a basis of build, operate and transfer to the Government.
The development is expected to relieve the country of the acute power shortage. Uganda requires more than 120MW of power because the hydro-power generation has dwindled to 120MW from the installed capacity of 380MW.
The Government is also in the process of finalising procurement of another 50MW thermal plant at Mutundwe.
Aggreko International is generating 100MW of thermal power, which is thrice as expensive as hydro.
However, heavy-fuel oil-powered generators are cheaper than the diesel thermal powered generators. That would reduce the cost of electricity.