In 1995, Uganda announced plans to build the 600-MW Karuma hydropower dam only to be faced with repeated delays and corruption allegations. The dam, set on the Nile, originally had support from Norway’s Veidekke through its UK subsidiary Noricil; however, it was reported that the company allegedly paid a $10,000 bribe to a government official in 1999.
Further bribery charges arose with one Chinese company reportedly offering $600,000 to some members of the bid evaluation committee. Supposedly two Chinese companies, China Water and Electric Corp. and Synohydro Corp., learned of that proposal and allegedly offered $1.2 million. This resulted in the police division Special Investigations Unit looking into the claims as well as President Yoweri Museveni ordering a further investigation.
And now the government is on the lookout for a new project manager with local news source The Independent reporting that Swiss national Traugott Benz and British citizen Graeme Watson are the final candidates. Uganda advertised the position detailing that the chosen candidate would provide management advisory services to the government team, monitor project implementation, and liaise with the Uganda Electricity Generating Co. Ltd. and the Uganda Electricity Transmission Co. Ltd. over transmission lines. The government plans to fully finance, build, and operate the Karuma dam.
What is strange is the government’s huge role in undertaking such an enormous project. The country’s largest hydropower project, the Bujagali Hydroelectric Power Plant, delivered its first 50 MW of clean energy to the national grid on February 22. The build-own-operate-transfer (BOOT) project was financed by the government and Bujagali Electricity Ltd. and is on track to achieve full commissioning of all five units by mid-year. When all five units are commissioned, the 250 MW hydropower plant will increase Uganda’s installed generation capacity by about 50%. Uganda’s electricity generating capacity stands at 330 MW although demand is 455 MW, and expected to grow at 9% annually.
With all the repeated delays and halt of the Karuma project coupled with the need for additional power to be pumped into the grid, it would appear that following the Bujagali example would result in the government opting for another BOOT system for such a large project.
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