All systems go
Feb 26, 2003
MINISTER OF Energy, Syda Bbumba has indicated that the Bujagali project may finally take off in the near future.
MINISTER OF Energy, Syda Bbumba has indicated that the Bujagali project may finally take off in the near future. She said that she is expecting a final communication from the World Bank and the United States Department of Justice in March.
The minister said that the AES Corporation can then move to negotiations with the financiers. She estimated the changes of the dam taking off as now close to 90 per cent.
This is great news. Less than five per cent of Ugandans are connected to the national grid and rural electricification will not be happen unless power generation is substantially increased.
The Bujagali project is way overdue.
Firstly certain international NGOs tried to block it because they hate all dams on principle.
Secondly, global recession hit AES overseas earnings and its ability to raise loan finance.
Thirdly it was discovered that former Energy Minister Richard Kaijuka had received $10,000 from Noricil, a subsidiary of Veidekke that is part of the consortium building the dam. This caused the World Bank to suspend its loan guarantee to AES.
All these problems have been resolved.
The clear economic benefits and minimal environmental impact of the Bujagali dam have ultimately dwarfed the objections of the NGOs.
AES has undergone a restructuring programme that has left it in a much stronger financial position.
And the Uganda government has recalled Kaijuka from his post as an executive director of the World Bank, thereby alleviating the US Department of Justice’s concern that the government is soft on corruption. Uganda desperately needs the power that the dam will provide. Hopefully, it is now all systems go with Bujagali.
The minister said that the AES Corporation can then move to negotiations with the financiers. She estimated the changes of the dam taking off as now close to 90 per cent.
This is great news. Less than five per cent of Ugandans are connected to the national grid and rural electricification will not be happen unless power generation is substantially increased.
The Bujagali project is way overdue.
Firstly certain international NGOs tried to block it because they hate all dams on principle.
Secondly, global recession hit AES overseas earnings and its ability to raise loan finance.
Thirdly it was discovered that former Energy Minister Richard Kaijuka had received $10,000 from Noricil, a subsidiary of Veidekke that is part of the consortium building the dam. This caused the World Bank to suspend its loan guarantee to AES.
All these problems have been resolved.
The clear economic benefits and minimal environmental impact of the Bujagali dam have ultimately dwarfed the objections of the NGOs.
AES has undergone a restructuring programme that has left it in a much stronger financial position.
And the Uganda government has recalled Kaijuka from his post as an executive director of the World Bank, thereby alleviating the US Department of Justice’s concern that the government is soft on corruption. Uganda desperately needs the power that the dam will provide. Hopefully, it is now all systems go with Bujagali.