THE stalled Bujagali hydro-electric dam construction will start before the proposed Karuma power project.
By Yunusu Abbey
THE stalled Bujagali hydro-electric dam construction will start before the proposed Karuma power project.
Energy minister Syda Bbumba (right) said yesterday the Government will stick to its original programme of building Bujagali first.
The Government is looking for international companies to build the Bujagali dam while a Norwegian company, Norpak Power Ltd., says it is ready to start on Karuma.
“Despite the problems we encountered on Bujagali, the programme remains,†Bbumba said.
She said the Government was negotiating with international companies over developing Bujagali.
The 250-megawatt Bujagali dam hit a snag recently when an American company, AES Corporation, pulled out of the project.
The Americans, who had wanted to build the dam under a local subsidiary, AES Nile Power, attributed the withdrawal mainly to financial constraints.
“Since we are starting afresh, the outcome might not be visible immediately. But we hope to get some positive results by the end of the year,†Bbumba said.
Bbumba declined to name the companies rooting for the Bujagali project. The parties met in Kampala last month.
Sources said the shortlisted firms include a French firm, Electricit de France, South Africa’s Eskom and UK’s CDC Capital Partners.
Norpak said it was ready to start the Karuma project provided the Government gave it the greenlight. It plans to construct a 200-megawatt power dam at Karuma Falls.