Press Release from UEGCL

Oct 17, 2017

“Karuma Engineers are working”

On Tuesday, October 10th 2017 the New Vision reported "Karuma Engineers on Strike". Two days later, the Daily Monitor reported: "Karuma engineers lay down tools over pay".

In both reports, while it is true that some workers of Energy Infratech PVT Ltd (EIPL), the Owner's Engineer for the (600 MW) Karuma Hydro Power Project (HPP) went on strike, there are a number of glaring factual errors and omissions that we wish to clarify below.

1.The Government of Uganda represented by the Ministry of Energy and Mineral Development (MEMD) entered into a contract with EIPL on 23rd October 2013 for the construction supervision of the hydropower plant component of the Karuma HPP. Uganda Electricity Generation Company Limited (UEGCL) is the Government of Uganda agency tasked with ensuring the successful delivery of the project and carrying out Operation and Maintenance (O&M) duties when the hydropower station is commissioned.

2. In accordance with the Deed of Assignment for Karuma HPP of 10th October 2016, UEGCL endorses and certifies as correct EIPL's invoices and submits to MEMD for payment. EIPL's invoices for fees for the period January to March 2017 were first submitted to UEGCL in May 2017. UEGCL duly certified the invoices and forwarded them to MEMD for payment in July 2017. The delay in certification was occasioned by several irregularities which UEGCL, in exercising due diligence and value for money audits on the invoices, flagged up and requested EIPL to rectify before onward forwarding to MEMD for payment.

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