The long wait for the construction of the 250-megawatt power project at Bujagali is finally over. The government on Friday signed final documents instructing Bujagali Energy Ltd (BEL), the sponsors of the project and Salini Constructors, to start the implementation works “on or before June 1, 2007.”
“The relevant conditions have been fulfilled, hence the signing of the Limited Notice to Proceed (LNTP) agreements today,” Energy Minister Daudi Migereko, said shortly after the signing ceremony in Kampala.
“Subsequently, Uganda Electricity Transmission Company (UETCL) will disburse a loan of $90 million [about Shs150 billion], which will in turn be able to pay Salini to commence LNTP works.” He said the loan was taken from the government’s Energy Fund.
“The loan would be paid back when the disbursements from international lenders including the World Bank and the European Development Bank begin,” Mr Migereko said.
He said it was deemed necessary to extend the loan to BEL so as to accelerate the development of the $750 million project, that would otherwise have started in September/October.
The PS Ministry of Energy and Mineral Development Kabagambe-Kaliisa said: “All in all, at least nine agreements were signed to pave way for the implementation of the long awaited project.
The dam, to be constructed on River Nile, about 8km downstream of the existing Nalubale and Kiira power stations in Jinja, is widely expected to alleviate the power shortage.
The signatories were Mr Francis Okello for BEL, Mr Daniele Cascianelli for Salini. Deputy Secretary to the Treasury, Keith Muhakanizi for government while UETCL Managing Director Eriasi Kiyemba represented the transmission company. Mr Cascianelli said they would speed up the work.
Information from: allafrica.com
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