AES pulls out of Bujagali power dam contract
Aug 13, 2003
THE delayed multi-million-dollar Bujagali hydro-electric power project has hit a snag.
By Yunusu Abbey and Maurice Okore
THE delayed multi-million-dollar Bujagali hydro-electric power project has hit a snag.
A leading American company, AES Corporation, which wanted to build the dam under its local subsidiary, AES Nile Power, has pulled out of the giant project.
Foreign news agencies said yesterday AES had decided to pull out of the development of a dam in Uganda that has been delayed by a US government probe into allegations of corruption in the project.
The reports said in a filing with the US Securities and Exchange Commission, the Arlington, Virginia-based company, said it decided last week to discontinue the construction and development of AES Nile Power in Uganda.
In the third quarter, AES is expected to write off about $75m of its investment in the Bujagali project.
Daudi Migereko, the energy state minister, said last evening he had not yet seen the official communication from AES over the withdrawal.
“My minister (Syda Bbumba) has been handling the matter and dealing directly with AES and the World Bank (the project financiers).
“She has been busy preparing a statement which will be issued any time regarding the issue,†Migereko said.
It was not possible to reach Bbumba on her phone.
Fred Kabagambe-Kaliisa, the energy ministry permanent secretary and AES Nile Power officials in Kampala were unavailable for comment.
The US Department of Justice is investigating allegations that people or entities involved with the project made or agreed to make “improper†payments. The company is conducting its own internal investigations.
THE delayed multi-million-dollar Bujagali hydro-electric power project has hit a snag.
A leading American company, AES Corporation, which wanted to build the dam under its local subsidiary, AES Nile Power, has pulled out of the giant project.
Foreign news agencies said yesterday AES had decided to pull out of the development of a dam in Uganda that has been delayed by a US government probe into allegations of corruption in the project.
The reports said in a filing with the US Securities and Exchange Commission, the Arlington, Virginia-based company, said it decided last week to discontinue the construction and development of AES Nile Power in Uganda.
In the third quarter, AES is expected to write off about $75m of its investment in the Bujagali project.
Daudi Migereko, the energy state minister, said last evening he had not yet seen the official communication from AES over the withdrawal.
“My minister (Syda Bbumba) has been handling the matter and dealing directly with AES and the World Bank (the project financiers).
“She has been busy preparing a statement which will be issued any time regarding the issue,†Migereko said.
It was not possible to reach Bbumba on her phone.
Fred Kabagambe-Kaliisa, the energy ministry permanent secretary and AES Nile Power officials in Kampala were unavailable for comment.
The US Department of Justice is investigating allegations that people or entities involved with the project made or agreed to make “improper†payments. The company is conducting its own internal investigations.