Monday,
June 10, 2002
Bujagali Dam: 'Make Agreement
Public'
By DAVID KAIZA
THE EASTAFRICAN
The Ugandan environmentalists
whose campaign forced the World Bank to postpone a meeting to determine
the fate of the Bujagali Dam have challenged the government and the Bretton
Woods institutions to make public the Power Purchase Agreement, which they
say would hurt the consumer and the taxpayer.
The Power Purchase Agreement
between Uganda and the AES Nile Power, lays out the amount of money to
be paid out to the latter, and how much the consumer will have to pay per
unit consumed.
There are allegations that
the agreement favours AES at the expense of the consumer.
How much the consumer will
pay for power after Bujagali starts generation remains unknown. The environmentalists
who travelled through Europe and the US campaigning against Bujagali last
week, said the only reason for its being kept secret was because it was
suspect.
Currently, the consumer pays
7.9 US cents per kilowatt-hour, up from 6.5 US cents, despite the addition
of an extra dam in 2000. Sources say that when the Bujagali power plant
starts generation, power is likely to cost 10.5 US cents. It is a figure
that both AES and the Ministry of Energy decline to confirm.
There has been a stand off
between government and environmentalists over Bujagali for the last seven
years over questions of transparency. The World Bank's Multilateral Investment
Guarantee Agency (Miga) was to have made a decision over Bujagali at the
beginning of June, but accusations that the project was going ahead on
what campaigners called "fraudulent reports" forced the board to postpone
the decision.
Both the government and AES
deny that the World Bank was forced to delay its decision. The last time
The EastAfrican spoke to the State Minister for Energy Daudi Migereko,
he said that the meeting would be held sometime at the beginning of this
month.
On Wednesday last week, the
Swedish Minister for Development, Jan O. Karlsson, reported to the Swedish
parliament that his government had managed to get the Miga board to delay
the decision on the dam until the inspection panel's report had been published.
The Permanent Secretary in
Uganda's Ministry of Energy Kabagambe Kaliisa, denied that a meeting had
been scheduled for June 4 as reported in the local press. He said that
publishing the inspection panel's report was a matter of routine.
"There has been a delay,"
said Mr Kaliisa. "But it was a blessing in disguise because we got a better
deal."
"AES is guaranteed to earn
money. Miga is guaranteed to get its money back. It is only the consumer
and the Ugandan tax payer who are not sure how much they will loose," Mr
Frank Muramuzi, president of the National Association of Professional Environmentalists,
NAPE told The EastAfrican. "Our only wish is that the people should
know this."
Mr Muramuzi called the project
"economically risky," pointing out that the 250mw projection was unlikely
to be met because the dam will be too close to Owen Falls and Kiira power
stations. He accused the government of trying to forge ahead the project
without adequately consulting the public.