$27m Kisoro power dam case resumes

Sep 23, 2020

The case stemmed from ERA’s refusal to extend the date for Elemental Energy to complete negotiations for the deal.

 
Hearing of the dispute between the Electricity Regulatory Authority (ERA) and Elemental Energy over a 7MW power dam in Kisoro resumes on Thursday at the electricity disputes tribunal after a nine-month delay.

At the heart of the dispute is a $27m (sh99b) deal for the construction of the Nyamabuye power dam along River Kaku in Busanza sub-county, Kisoro district.

The case stemmed from ERA's refusal to extend the date for Elemental Energy to complete negotiations for the deal.

The tribunal is expected to decide on a number of issues concerning the dispute. Lawyers for both sides on Wednesday agreed to five dispute issues at the electricity disputes tribunal.

Elemental's complaints before the tribunal include ERA's rejection of its second application for modification of licence and its application for transfer of licence to another company identified as Frontier.

Court documents indicate that after Elemental was issued with an invoice for modification of their licence, which was paid on the same day on December 11, 2018, seven months later, on July 18, 2019, ERA issued it with two notices; one for compliance and another to show cause why their licence should not be revoked.

ERA's defence witnesses include its top boss Eng. Ziria Tibalwa Waako and the director for legal and authority affairs, Harold Obiga. Eng. Roland Sekaziga, Elemental's managing director and Daniel Schultz, the co-founder at Frontier, will testify for the complainant. Micheal Sanya, the clerk to the tribunal, said hearing of the case will be expedited to provide a way forward for the development of Kisoro district's power dam.

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