It was found that the assumed tariffs were above the cost of supply, post2011. European investment bank complaints office nape uganda. Assessing the bujagali hydropower project in uganda. Approval and financing for the bujagali falls project the ugandan parliament approved the project in 1999 after a yearlong debate. Uetcl, a stateowned enterprise, assumed responsibility. Bujagali hydropower project when this project was brought to the board in. Cao compliance cao investigation of ifc november 3, 2017.
International rivers network and the bujagali dam project a. Bel received the award at the 9th annual euromoney project finance awards dinner held on 6 march in london, uk. Bhp is the largest privately financed hydroelectric plant in subsaharan africa and the. The bujagali hydropower station is a key part of this program. Risk mitigation instruments for renewable energy in. A transmission line, financed by the african development bank afdb and the japan. The bujagali project, which was contested for years in uganda and internationally, was approved by the world bank, european investment bank and african development bank in aprilmay 2007. Private power generation bujagali project economic and financial analysis. Ifc was head of the financing institutions, which also included the world bank, ida, african development bank afdb, deutsche entwicklungs gesellschaft deg, west lb and various institutions for export credit. The bujagali project was one of the first to ever be assessed under the newly adopted pss, which introduced for the first time at ifc a standard on labor and working conditions. Developers were often unable to contextualize and apply standards and regulations to their projectspecific setting. Economic and financial evaluation study final report 2 february 2007 2602200720224 executive summary power planning associates was appointed by the ifc in january 2006 to carry out an economic and financial evaluation study of the 250 mw bujagali ii hydropower project in uganda.
Preparation of a resettlement plan world bank, 1998, world bank operational manual world. The project includes the construction of a 250mw runofriver hydropower station on the nile river eight kilometers downstream from the existing nalubaalekiira power station. The issues cited relate to project construction, which concluded in 2012. Awarded the the africa power deal of the year 2007 by euromoney project finance. Bujagali, a runofriver hydropower project on the victoria nile, is one of the largest powergeneration plants in uganda, contributing 45 percent of the countrys annual electricity generation. The bujagali hydropower project is a hydroelectric project located on the victoria nile river near the town of jinja, uganda, being developed by bujagali energy limited bel. Bhp is the largest privately financed hydroelectric plant in subsaharan africa and the largest power investment in east africa. Bujagali hydropower project when this project was brought to the board in april 2007, the united states supported. An overview the bujagali hydropower project is a line and 27 km of new 1. An analysis of bujagali ii economic and financial evaluation study final reports by power planning associates. International rivers network and the bujagali dam project b. The bujagali dam is the best longterm solution to help reverse ugandas power problem, according to the projects director, glenn gaydar. An analysis of bujagali ii economic and financial evaluation study.
Its commissioning in 2012 significantly reduced ugandas reliance on costlier thermal power generation. A twail analysis of foreign investment and development. Economic and financial evaluation study final report 6 february 2007 26. Uganda bujagali hydropower project english the world. Private power generation bujagali project economic and.
The bujagali project is a 200mw hydropower facility on the victoria nile in uganda that will help address the countrys energy crisis. The government of uganda gou is in the process of developing generation capacity to meet the medium to longterm electricity requirement for the country taking. Mar, 2020 the bujagali dam is the best longterm solution to help reverse ugandas power problem, according to the projects director, glenn gaydar. International rivers network and the bujagali dam project a by benjamin c. The bujagali dam project in uganda centre for public. The african development bank adb, the world bank and other lenders finance the. The bujagali interconnection project is closely associated with the bujagali hydropower project.
Ifc proposed refinancing for bujagali energy limited. Multilateral and bilateral debt will be provided by the european investment bank, international finance corporation, african development bank, dutch development agency nederlandse financieringsmaatschappij voor ontwikkelinsslanden fmo. Official pdf, 57 pages world bank documents world bank group. Concession agreement a contract between a publicsector body and a project company, which allows the project company to carry out the project e. The rest of the funds were borrowed from the following international lenders.
Development economics political aspects forced migration economic aspects foreign investments hydroelectric construction neoliberalism. The project will almost double ugandas gridbased electricity supply, at a time when energy experts are questioning. According to african business, 1 the east african power master plan involves a series of improvements and new facilities in uganda, kenya, and tanzania that will substantially increase the available electric power in the region and lay a foundation for further industrial. Uganda bujagali hydropower project english the world bank. The bujagali project is expected to be the key element of a broad scheme for expanding electrical generation in the region. It was approved by the boards of directors of the african development fund adf on 28 june 2007. Project name uganda bujagali hydropower project project.
Jul 28, 2017 the bujagali hydropower dam on the river nile in uganda was initially approved in 1994 as the lowest cost option to increase power production in the country. Bmau briefing paper 1118 may 2018 1 ministry of finance, planning and economic development the challenges of implementing introduction our case study which is the mbararamiramabirembo and bujagalitororolessos. The bujagali hydropower project the project is a 250 mw runoftheriver hydroelectric generation plant located at dumbbell island on the nile river in the republic of uganda. Sn power completes investment in bujagali hydropower project. The investment by sn power follows the projects successful refinancing with its lenders including development finance institutions such as the international finance corporation and african development bank which reduced ujagali energy limiteds annual debtservicing payments, lowering the tariff of. Ugandan environmental and rural development organisations are asking for international support in their efforts to stop the construction of the bujagali dam and. The project supports ugandas broader development strategy, which focuses in large part on improving the investment climate to promote growth and reduce poverty. The main development objective of the bujagali hydropower project for uganda is to promote growth through developing leastcost power generation for domestic use in an environmentally sustainable and efficient manner.
The program leverages commercial investment in small, and medium sized renewable energy re projects in uganda. Ifc proposed refinancing for bujagali energy limited uganda. Bujagali hydropower project executive summary uganda. Mar 08, 2018 maximizing finance for development mfd approach.
Aesnp will sell electricity to uetc under a 30year ppa. Appraisal report bujagali hydroelectric project construction. The bujagali project is a model of the kind of innovative funding solutions and partnerships that will help resolve africas energy crises, obiageli ezekwesili, wb africa region vp. The wor ld bank and international finance corporation 2005 bujagali. Economic and financial evaluation study final report 4 february 2007 26. Project name uganda bujagali hydropower project project id. The project faced numerous economic, environmental and social challenges, which combined to delay its progress, and it also. The power plant is intended to provide clean, efficient energy to the local community, which is in desperate need of an increased electricity supply. I fe i international finance corporation world bank group. The proposed project will be implemented by aesnp, a special purpose company incorporated as a private limited liability company under the laws of uganda, to develop, finance, build and operate the bujagali hydropower project on a buildownoperatetransfer basis. A case study of bujagali hydropower public private.
The financial closing in december 2007 of the 250megawatt bujagali project in uganda on the nile near lake victoria should inspire confidence in private sector investors, governments and development institutions that a hydropower project in africa can be financed on a project finance basis. Cao investigation report ifcs investment in bujagali energy limited, uganda 3 executive summary the bujagali hydropower project the project is a 250 mw runoftheriver hydroelectric generation plant located at dumbbell island on the nile river in the republic of uganda. The bujagali hydropower dam on the river nile in uganda was initially approved in 1994 as the lowest cost option to increase power production in the country. The project is owned and operated by bujagali energy limited bel or the client. The bujagali power station is a hydroelectric power station across the victoria nile that harnesses the energy of its namesake the bujagali falls in uganda.
The bujagali dam project in uganda centre for public impact. Developing bujagali, the largest private sector investment. Construction eventually began in 2007 and the government finally inaugurated the dam in october 2012. The project company, bujagali energy limited, developed, financed and constructed the project. Bujagali energy limited bel today announced that its bujagali hydropower project bujagali was recently awarded the africa power deal of the year 2007 by euromoney project finance magazine. Ugandan environmental and rural development organisations are asking for international support in their efforts to stop the construction of. The government of uganda, with help from the world bank and african development bank, is constructing a 200megawatt dam near bujagali falls on the nile, just downstream from two other large dams. The project faced numerous economic, environmental and social challenges, which combined to delay its progress, and it also underwent. It was officially inaugurated on 8 october 2012 by ugandan president yoweri museveni and aga khan iv in the presence of african politicians and investors.
Development economics political aspects forced migration economic aspects foreign investments hydroelectric construction neoliberalism analysis. Economic and financial evaluation study final report 4 february 2007 2602200720224 elasticity effect which has been factored into the demand forecast remained valid. Ueb will stubse250 mw hydropower facility being mission lines. Bujagali energy will operate the project for a period of 30 years from the commercial operations date, after which the project will be transferred to the government of uganda for nominal consideration. A twail analysis of foreign investment and developmentinduced displacement and resettlement. Pdf assessing the bujagali hydropower project in uganda. Uganda bujagali hydropower project english abstract. The costly dams power will not meet the energy needs of most ugandans, will drown a treasured waterfall, and could harm lake victoria, the worlds largest tropical lake. Now, more than a decade after offering our support, one must question whether the projects benefits outweigh the environmental and social costs and challenge managements claim that bujagali is a positive example of mfd in action. Literature on the conflict indicates that the bujagali appraisal studies did not adequately assess bujagali against other alternative energy options, like solar and wind power, before determining bujagali dam as the leastcost and most appropriate option6. Bujagali falls hydropower dam, jinja, uganda power. Bujagali ii economic and financial evaluation study. The stated purpose of the study by power planning associates, which was commissioned by the. Curve on the economic and financial viability of the project.