The proposed cost of the construction of a 250MW Bujagali hydro-power plant has increased from $500m to $750m, a World Bank study has exposed.
The incrimate was due to the rising construction costs due to the high oil, metal and cement prices on the world market, an energy expert has revealed.
The project’s costs are to cover construction, capitalized financing costs, contingencies among others; required for the dam and power house estimated to sum up to $750m, the project information document of concept stage has revealed.
It is alleged that the World Bank would support the project by providing a Partial Risk Guarantee of $115m.However, the interconnection project, which includes transmission lines will be financed by the African Development Bank.
Provisional financing of the project will involve $150m from shareholders, $480m in long term debt, while the Internatinal development Agency will provide $115m.
Bujagali energy will build and put up 100km transmission lines, sub-stations and other works on behalf of Uganda Electricity Transmission Company. The dam is expected to be commissioned in 2011.
It should be noted that Uganda’s generation capacity is 480MW, of which 220MW are generated from kiira and Nalubaale power plants; leaving a shortfall of 120MW.The completed Bujagali hydro-power plant will fill the missing
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