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. Development economics political aspects forced migration economic aspects foreign investments hydroelectric construction neoliberalism. Although not a formal part of this process, we also heard from the requesters. Curve on the economic and financial viability of the project. 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. An analysis of bujagali ii economic and financial evaluation study final reports by power planning associates. The project faced numerous economic, environmental and social challenges, which combined to delay its progress, and it also underwent. Economic and financial evaluation study final report 6 february 2007 26. The bujagali interconnection project is closely associated with the bujagali hydropower project. International rivers network and the bujagali dam project a by benjamin c.
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. Approval and financing for the bujagali falls project the ugandan parliament approved the project in 1999 after a yearlong debate. Project name uganda bujagali hydropower project project id. The project is owned and operated by bujagali energy limited bel or the client. 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 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. Ugandan environmental and rural development organisations are asking for international support in their efforts to stop the construction of. The issues cited relate to project construction, which concluded in 2012. 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. Concession agreement a contract between a publicsector body and a project company, which allows the project company to carry out the project e. Private power generation bujagali project economic and financial analysis. Bujagali hydropower project when this project was brought to the board in april 2007, the united states supported. Ifc proposed refinancing for bujagali energy limited uganda.
Preparation of a resettlement plan world bank, 1998, world bank operational manual world. An overview the bujagali hydropower project is a line and 27 km of new 1. The power plant is intended to provide clean, efficient energy to the local community, which is in desperate need of an increased electricity supply. Risk mitigation instruments for renewable energy in.
Its commissioning in 2012 significantly reduced ugandas reliance on costlier thermal power generation. 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. The stated purpose of the study by power planning associates, which was commissioned by the. 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. 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.
Development economics political aspects forced migration economic aspects foreign investments hydroelectric construction neoliberalism analysis. The program leverages commercial investment in small, and medium sized renewable energy re projects in uganda. 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. An analysis of bujagali ii economic and financial evaluation study. 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 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. Bujagali ii economic and financial evaluation study. 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. Bhp is the largest privately financed hydroelectric plant in subsaharan africa and the largest power investment in east africa. 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. Ueb will stubse250 mw hydropower facility being mission lines. 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.
Ifc proposed refinancing for bujagali energy limited. I fe i international finance corporation world bank group. A case study of bujagali hydropower public private. Uetcl, a stateowned enterprise, assumed responsibility. 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 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. 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. Developers were often unable to contextualize and apply standards and regulations to their projectspecific setting. Appraisal report bujagali hydroelectric project construction. Bujagali hydropower project executive summary uganda. Pdf assessing the bujagali hydropower project in uganda. Construction eventually began in 2007 and the government finally inaugurated the dam in october 2012. 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. A transmission line, financed by the african development bank afdb and the japan. World bank group, is to evaluate the economic viability of the proposed bujagali project in. 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. Awarded the the africa power deal of the year 2007 by euromoney project finance.
Cao compliance cao investigation of ifc november 3, 2017. 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. Ugandan environmental and rural development organisations are asking for international support in their efforts to stop the construction of the bujagali dam and. The wor ld bank and international finance corporation 2005 bujagali. Uganda bujagali hydropower project english the world. The bujagali hydropower station is a key part of this program. By pete tsournos, associate professor, department of economics, california state university chico. Mar, 2020 the bujagali dam is the best longterm solution to help reverse ugandas power problem, according to the projects director, glenn gaydar. Project name uganda bujagali hydropower project project. The following complaint concerns the bujagali dam project in uganda.
Bhp is the largest privately financed hydroelectric plant in subsaharan africa and the. Bel received the award at the 9th annual euromoney project finance awards dinner held on 6 march in london, uk. Uganda bujagali hydropower project english abstract. 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. 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. The bujagali dam project in uganda centre for public impact. The project will almost double ugandas gridbased electricity supply, at a time when energy experts are questioning reliance on national grids. Aesnp will sell electricity to uetc under a 30year ppa. The project will provide the transmission infrastructure to interconnect the new bujagali hydropower station to the national electricity grid.
Assessing the bujagali hydropower project in uganda. Get fit uganda is a publicprivate partnership ppp program managed by kfw in cooperation with the ugandan government. Official pdf, 57 pages world bank documents world bank group. The project includes the construction of a 250mw runofriver hydropower station on the nile river eight kilometers downstream from the existing nalubaalekiira power station.
Sn power completes investment in bujagali hydropower project. Bujagali falls hydropower dam, jinja, uganda power. The project faced numerous economic, environmental and social challenges, which combined to delay its progress, and it also. A twail analysis of foreign investment and development.
Bujagali hydropower project when this project was brought to the board in. 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 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. International rivers network and the bujagali dam project a. Economic and financial evaluation study final report 4 february 2007 2602200720224 elasticity effect which has been factored into the demand forecast remained valid. It was found that the assumed tariffs were above the cost of supply, post2011.
Economic and financial evaluation study final report 4 february 2007 26. European investment bank complaints office nape uganda. The investment by sn power follows the project s 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. The project will almost double ugandas gridbased electricity supply, at a time when energy experts are questioning.
Mar 08, 2018 maximizing finance for development mfd approach. International rivers network and the bujagali dam project b. The project supports ugandas broader development strategy, which focuses in large part on improving the investment climate to promote growth and reduce poverty. 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 project company, bujagali energy limited, developed, financed and constructed the project. The bujagali dam project in uganda centre for public. 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. 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. It was approved by the boards of directors of the african development fund adf on 28 june 2007.
The bujagali dam is the best longterm solution to help reverse ugandas power problem, according to the projects director, glenn gaydar. The bujagali hydroelectric project bhp, which commenced commercial operations in august 2012, is a 250 mw runofriver hydro facility located on the nile river in the republic of uganda. The rest of the funds were borrowed from the following international lenders. The bujagali project is expected to be the key element of a broad scheme for expanding electrical generation in the region. The african development bank adb, the world bank and other lenders finance the.271 195 1140 454 37 1070 1347 1418 631 1476 181 19 736 1522 955 465 51 959 961 199 1163 1236 821 1374 95 1377 476 921 108 807 317 284 1193 1028 213 349 740 1230 1272 1029