Sh215b carried forward for Karuma dam
Jun 05, 2008
THE Government has carried forward sh215.6b of the energy fund to start the construction of the 200MW Karuma hydro-power project, the finance minister has said.
BUDGET COUNTDOWN
By Ibrahim Kasita
THE Government has carried forward sh215.6b of the energy fund to start the construction of the 200MW Karuma hydro-power project, the finance minister has said.
“Sh215.6b of the Energy Fund has been carried forward from the financial year 2007/08 for use in the development of Karuma hydro-power project,†Dr. Ezra Suruma said.
“However, we have maintained the Budget allocation for thermal power to address the energy shortfall,†he said.
While responding to issues raised in the National Budget Framework paper for the financial year 2008/09 by MPs on the budget committee, Suruma said the project would include critical transmission lines and feasibility studies.
He said the Government, through a public-private partnership, would start development of the Isimba 100MW hydro-power project and the Kaiso-Tonya-Nkenda transmission line.
Suruma said sh35b had been allocated for a resettlement plan for the Kaiso-Tonya transmission line.
In 2007/08, the Government established an energy fund worth $75m aimed at fast-tracking construction of hydro-power projects.
Subsequently, the money was advanced to Bujagali Energy, a consortium of Industrial Promotion Services (Kenya) and Sithe Global, a US-based power giant, to start construction of the 250MW Bujagali hydro-power project.
The $75m loan was used to finance engineering design, detailed site investigations, construction of permanent civil works, camp site and offices and procurement of equipment. This put the construction two months ahead of schedule.
The money was returned to the Government after the Bujagali project lenders released $682m.
The focus of the 2008/09 Budget is to enhance economic growth, generate employment and prosperity by increasing the incomes of most Ugandans.
Energy was selected because it has a high potential for employment generation both directly and indirectly. The energy ministry has drawn up a new strategy to tackle the energy crisis, creating hopes of reducing loadshedding.
“The new strategy is tackling electricity demand head-on instead of the old approach of chasing demand forecasts from behind,†Daudi Migereko, the energy minister, said.
“This is through attracting local, foreign, public and private investors into the sector. Our instructions from the Government are that we should never chase demand,†he said.
By Ibrahim Kasita
THE Government has carried forward sh215.6b of the energy fund to start the construction of the 200MW Karuma hydro-power project, the finance minister has said.
“Sh215.6b of the Energy Fund has been carried forward from the financial year 2007/08 for use in the development of Karuma hydro-power project,†Dr. Ezra Suruma said.
“However, we have maintained the Budget allocation for thermal power to address the energy shortfall,†he said.
While responding to issues raised in the National Budget Framework paper for the financial year 2008/09 by MPs on the budget committee, Suruma said the project would include critical transmission lines and feasibility studies.
He said the Government, through a public-private partnership, would start development of the Isimba 100MW hydro-power project and the Kaiso-Tonya-Nkenda transmission line.
Suruma said sh35b had been allocated for a resettlement plan for the Kaiso-Tonya transmission line.
In 2007/08, the Government established an energy fund worth $75m aimed at fast-tracking construction of hydro-power projects.
Subsequently, the money was advanced to Bujagali Energy, a consortium of Industrial Promotion Services (Kenya) and Sithe Global, a US-based power giant, to start construction of the 250MW Bujagali hydro-power project.
The $75m loan was used to finance engineering design, detailed site investigations, construction of permanent civil works, camp site and offices and procurement of equipment. This put the construction two months ahead of schedule.
The money was returned to the Government after the Bujagali project lenders released $682m.
The focus of the 2008/09 Budget is to enhance economic growth, generate employment and prosperity by increasing the incomes of most Ugandans.
Energy was selected because it has a high potential for employment generation both directly and indirectly. The energy ministry has drawn up a new strategy to tackle the energy crisis, creating hopes of reducing loadshedding.
“The new strategy is tackling electricity demand head-on instead of the old approach of chasing demand forecasts from behind,†Daudi Migereko, the energy minister, said.
“This is through attracting local, foreign, public and private investors into the sector. Our instructions from the Government are that we should never chase demand,†he said.