BUJAGALI HYDROELECTRIC POWER PROJECT

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http://allafrica.com/stories/201210070364.html

Uganda: Evolution of the 250 MW Bujagali Dam

By Ibrahim Kasita, 7 October 2012

The 250megawatts (MW) Bujagali hydropower plant started commercial operation on August 1, doubling Uganda's electricity supply.

This was after successful completion of the mandatory reliability tests run for all the five units on June 13, which confirmed that the individual units were capable of delivering the unit contract capacity of 50MW, with five units operating together.

Kabagambe Kaliisa, the energy ministry permanent secretary, said the plant is meeting 49% of Uganda's energy needs.

But Bujagali project started supplying electricity to the national grid in February when the first of the five units was commissioned.

The unit-by-unit commissioning was in response to the energy ministry's strategic decision to replace the expensive thermal power generation at the earliest date and minimise loadshedding.

Cheaper electricity

The move was aimed at saving the money that was used to pay for the expensive thermal power operations.

The level of subsidy (payment for thermal power) had reached unsustainable levels and the cumulative amount of subsidy paid out was $9.5m per month.

During the four-year construction period, the project created about 3,000 jobs, improved community services such as clean water supply, education and health facilities in nearby villages.

Most important is that the project has preserved the environment, while bringing substantial benefits for Ugandans - increased electricity supply, lower electricity costs, improved air quality (generators switched off), jobs and improvement for nearby villages.

Public-Private Partnership

The project was established through a public-private partnership model between the Government, a consortium of the Aga Khan Fund for Economic Development (AKFED) and US Blackstone affiliates.

This partnership created the Bujagali Energy Limited (BEL), which will own the plant for a 30-year concession period before transferring it to Uganda for $1.

"The project serves as an example of successful private-partnership model, ideal for replication through the region," Mahmood Ahmed, the Aga Khan Development Network country representative, said.

Best PPP model in the world

Uganda's energy ministry has been nominated for the World Finance Public-Private Partnership Awards of 2013 for the good job done. Alex Reid, the executive director of World Finance, which is organising the awards, said the nomination is in recognition of the work on the Bujagali Hydropower Project.

"It is considered by the judges as an 'exemplar of good practice' and is in a very strong position to win," he said.

The project lenders

Multi-lateral lenders funded the close to $900m power project. They include the World Bank Group, European Investment Bank, African Development Bank, Netherlands' Development Finance Company FMO, Germany's development banks KfW and DEG.

Commercial Banks included South Africa's ABSA Capital and Standard Chartered Bank. The World Bank Group, through its agencies like the International Finance Corporation (IFC), International Development Association (IDA) and the Multilateral Investment Guarantee Agency (MIGA), is the leading project lender.

Bujagali timeline

1994: Bujagali hydropower project conceived as the leastcost project.

1996: In February, the Government signs a $450m pact with US power giant AES Corporation to undertake the project. AES was a joint venture with Madhvani International.

In March, the World Bank's inspection panel approves the project and AES submits a draft Environment Impact Study (EIS) report to the National Environmental Management Authority (NEMA).

In November, AES announces that the project will deliver power by 2004. MPs approve the project.

In December, the cost of the project increases to $520m, which the Government and AES agree upon.

2002: In July, AES uncovers a bribery scandal and a wrangle erupts between traditional healers and the Bujagali oracle over compensation funds. It was alleged that Richard Kaijuka, the World Bank's associate director, was bribed $10,000 to support the project. This forced Kaijuka to resign.

In August, MPs begin querying the financial muscle of AES, hence delaying the project.

In June: Two construction firms Veidekke and Skanska pull out due to bribery and environmental controversies. The Government asks AES to lower the project cost.

In August, the World Bank reassures that it is going to fund the project. AES pulls out as the World Bank board is about to end the financial closure. The Government takes over AES' assets.

In September, the Government invites new developers and says the project will be developed before the one at Karuma.

2005: In February, the Government drafts the evaluation criteria for proposals for the project's development. Firms submit bids, but a consortium of Industrial Promotion Services (IPS) and Sithe Global emerge the best.

In December, UETCL signs a power purchase agreement and implementation agreement with BEL.

In early April: NAPE conducts its own public hearing against Uganda's laws.

2006: In mid-April, NEMA conducts a national stakeholders' public hearing at Jinja, where the affected community is located and promises to release a final verdict before the end of April.

April 26-28: The World Bank discusses the financial closure of the project.

In May: The World Bank Board of Directors approved a $360m loan to cement its support of the construction of the dam

June: The Government advances $90m to BEL to kick start and mobilise the equipment on site

August 21: President Yoweri Museven and Aga Khan lay the foundation stone for the Bujagali hydropower project.

September: The left hand side of the Bujagali Dumbell Island is blocked using cofferdams to provide room for construction of the power house.

2010 November: Right hand side of the Bujagali Dumbell is Island blocked but water start passing the power station

December: The contractor experiences unfavourable ground conditions (soft rocks instead of hard-rocks). Work is temporary delayed as the contractor digs out the soft rock to replace it with hard concrete cement to strengthen the integrity of the dam.

2012 February: Unit 1 tested and commissioned on the national grid (Kiira thermal power switched off.)

March: Unit 2 is tested and commissioned to the national grid (Mutundwe thermal plan switched off)

April: Unit 3 tested and commissioned onto the national grid. (Power from Namanve and Tororo thermal power plants reduced significantly)

May: Unit 4 tested and commissioned onto the national grid. (Day-time load-shedding eliminated completely

June 13: Unit 5 and final unit tested and commissioned on the national grid. (Day and night load-shedding eliminated).

August 1: Commencement of the Commercial Operations Date of the 250MW Bujagali Hydropower Project.

October 8: President Museveni and His Highness The Aga Khan will officially inaugurate the 250MW Bujagali Hydropower Project coinciding with celebrations to mark 50 years of Uganda's independence.
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New Vision

http://www.newvision.co.ug/news/636134- ... i-dam.html

Image

President Museveni greets His Highness Aga Khan at the launch of the Bujagali dam Monday afternoon.

Photo by Matthias Mugisha

Museveni commissions Bujagali dam

Publish Date: Oct 08, 2012

A cultural group entertains guests. Photo by Donald Kirya
newvision

By Vision Reporter

President Yoweri Museveni has criticized African past leaders and intellectuals for neglecting the energy sector a crucial tool for social transformation and modernization.

"One of the mistakes made by Africa's past leaders and intellectuals was to neglect the energy sector," Museveni made the remark while commissioning the Bujagali Hydropower project, a 250-megawatt power plant on River Nile.

The President said most African countries would now be modern economies if their past laeders had invested in power generation.



President Museveni (L) being welcomed by Energy Minister Irene Muloni (4th R) at the commissioning ceremony of Bujagali Hydro Power project in Buikwe on Monday. Looking on is Lands Minister Daudi Migereko (3rd R). Photo by Donald Kiirya

He assured Ugandans that upon completion of the last phase of the Bujagalai project, the country will not experience powers cuts again.

Some Heads of State who are in the country for the 50th Independence anniversary are also attending the function.

President Museveni greets His Highness Aga Khan at the launch of the Bujagali dam Monday afternoon.

Photo by Matthias Mugisha

Speaker of Parliament Rebecca Kadaga, Prime Minister Amama Mbabazi, ministers, MPs and members of the business community among others are present.

The multi-million dollar Bujagali hydropower project adds another 250MW onto the national grid for consumption.

Consumers will not experience load-shedding at any time as power deficit has been wiped out, at least for 24 months.

Museveni (in beret) moves to switch on the power at Bujagali Hydro power station Monday afternoon.

The $860m Bujagali hydropower project was commissioned, unit by unit, in response to energy ministry’s strategic decision to replace the expensive thermal power generation at the earliest date and minimise load-shedding.

The move was aimed at saving the money that was used to pay the expensive thermal power operations. The level of subsidy (payment for thermal power) had reached unsustainable levels and the cumulative amount of subsidy paid out was sh1.5 trillion.
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http://www.akdn.org/content/1149

Speech by His Highness the Aga Khan at the Inauguration Ceremony of the Bujagali Hydropower Project
08 October 2012


Bismillah-ir-Rahaman-ir-Rahim

Your Excellency, President Yoweri Kaguta Museveni of Uganda, and Your Excellency, the First Lady,
Your Excellency, President Pierre Nkurunziza of Burundi,
Your Excellency, President Salva Kiir of the Republic of South Sudan,
Your Excellency, President Mohamed Abdelaziz, President of Sahrawi Arab Democratic Republic,
Your Excellency, Dr. Mohamed Gharib Bilal, Vice President of Tanzania,
Your Excellency, Mr Alhaji Adam Yusuf, Vice President of the Republic of Southern Sudan,
Hon. Minister of Defence of the Republic of Congo,
Hon. Minister of Defence of Angola,
Hon. Minister of Home Affairs, of Zambia,
The Rt. Hon Prime Minister of Uganda,
Hon. Minister of Energy and Mineral Development of Uganda,
Honourable Ministers,
Secretary General of the East African Community,
Secretary General of the Great Lakes Region,
Your Excellencies, members of the Diplomatic Corps,
All other holders of high office and distinguished guests,

I want to mark this occasion as an occasion of very very great significance.

First of all, we are here to celebrate the 50 years of independence of Uganda, the Pearl of Africa. And it is an honour to be celebrating this event in the presence of President Museveni and so many distinguished leaders of other African nations.

It is also a pleasure to be joined today by all of you at the inauguration of the Bujagali Hydropower Plant - a momentous accomplishment that will open the door for continuing and expanding progress. It is not only a transformative development in the economic life of Uganda – and of the continent – but it is also an inspiring model of how such change can best be accomplished.

As we inaugurate the model today, I have two short comments I want to share with you:

The first is my admiration for the extraordinary diversity of men and women who came together to produce this remarkable project. We had planners and financiers, engineers and architects, scientists and government officials, suppliers and contractors, consultants, construction workers, and community leaders. And we had President Museveni and his government.

Their story is a compelling one, because in a project of this complexity, there are surprises that occur. When you have that number of participants working together for a five year period, those surprises have to be addressed by consensus; they cannot be addressed in any other way. And I would like to express my admiration for all the stakeholders who worked in such a united manner moving forward in the interest of the project and the interest of Uganda.

Let me give you one small example of the sort of issues that arose. The grid had to link to 100 kilometres of cable, and in order to do that, we had to cross 2,632 separate land parcels. That was just one small part of this vast endeavour.

At its heart, the Bujagali project is a Ugandan project. It is a Ugandan success story and again I would like to thank the President for having led this initiative in a way where this unique public private partnership was able to move forwards.

But this is not only a Ugandan project - it is a global project. As Nizar Juma said, 37 different nationalities participated from around the world to make this project move forwards.

The second point I would make is that this project has not stopped at the delivery of energy. It is investing in education, it is investing in healthcare, it is investing in social development, it is investing in all those aspects which improve the quality of life of people who live within the ambit of the project. And I think this is an important lesson to be learnt, because ultimately the goal is to improve the quality of life of people in the most complete manner possible.

Finally, let me address my thanks to all the stakeholders who have worked so well here. And I would refer to the project managers, to the contractors, to the workmen, to the lenders, who were very empathetic at a time when we needed their empathy, and I hope what we have learnt from this project, will give Uganda replicable knowledge for the benefit of all of Africa.

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http://www.4-traders.com/news/EIB-Europ ... -15315619/

EIB - European Investment Bank : Hydropower for Uganda

10/08/2012 | 11:27am US/Eastern

The USD 900m Bujagali hydropower plant on the River Nile near Jinja, Uganda, funded by the EIB, World Bank, African Development Bank, AFD, FMO and others, was inaugurated on Monday by President Yoweri Museveni.

The 250-megawatt power-generating facility will address the severe shortage of electricity in Uganda, a country with an acute need for new power sources.

Many Ugandans regularly experience rotating blackouts of up to 12-24 hours daily.

This lack of power is negatively affecting the Ugandan economy and its citizens because, in many areas, electricity is being produced by expensive and polluting stand-by power generators.

Alongside increasing the supply of reliable electricity the Bujagali power plant will lower energy costs, improve air quality, provide more than 3,000 jobs during construction and contribute to improved education, health and water supply in nearby villages.

It will reduce the emissions of greenhouse gasses in Uganda as hydropower electricity does not cause emissions of CO2 and as it will replace electricity generated by diesel and fuel oil generators, that emit considerable volumes of CO2 that contribute to global warming The Bujagali hydropower plant is being inaugurated on the eve of Uganda's 50th Independence anniversary.
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President Museveni and the Aga Khan Inaugurate Bujagali Hydropower Plant

http://www.akdn.org/Content/1150

Please also see:
Speeches by the Aga Khan, Nizar Juma, Chairman of Bujagali Energy Ltd — Videos: Powering Uganda's Future and A Brighter Future for Uganda — Photographs of the Inauguration Ceremony, and the Bujagali Hydropower Project — Project Brief.
En français: Communiqué de presse — Dossier du project

Established through a unique public-private partnership, the project will drive economic growth and provide clean, reliable power for Uganda

Completion of project showcases successful public-private partnership for infrastructure development, bringing together the Government of Uganda, Industrial Promotion Services (IPS - the infrastructure and industrial development arm of the Aga Khan Fund for Economic Development) and Blackstone Portfolio Company, Sithe Global.
The 250MW hydropower plant has close to doubled Uganda’s electricity supply and virtually eliminated load-shedding.
The total project cost is US$900 million.
Jinja, Uganda, 8 October 2012 — His Excellency President Yoweri Kaguta Museveni today inaugurated the 250MW Bujagali Hydropower Plant in the presence of His Highness the Aga Khan.

Constructed at a cost of US$900 million, Bujagali has been jointly developed by Industrial Promotion Services (IPS), the infrastructure and industrial development arm of the Aga Khan Fund for Economic Development, Sithe Global Power LLC (USA), a company majority-owned by a fund, Blackstone Capital Partners IV, L.P., managed by Blackstone on behalf of its investors, and the Government of Uganda. Bujagali, which is a clean and renewable source of generation, nearly doubles the country’s effective generation capacity, thereby eliminating the over 12-hour daily load-shedding that up until recently characterized Uganda’s power sector.

The inauguration ceremony, which took place on the eve of celebrations marking 50 years of Uganda’s independence, was attended by government officials, heads of State from across Africa, international dignitaries and members of the diplomatic community.

Speaking at the commissioning event, H.E. President Yoweri Museveni emphasised the importance of the Bujagali Plant and a stable, reliable and plentiful electricity supply, to the welfare and development of Uganda and its people. He thanked the project partners for having delivered the plant on schedule and commended His Highness for his role in establishing a successful consortium.

Bujagali represents one of the largest privately-funded power sector investments ever made in Sub-Saharan Africa and sets a unique precedent for public-private partnerships. The plant will be operated by Bujagali Energy Limited (BEL), a company established by the project sponsors and the government of Uganda for the sole purpose of developing and subsequently operating the plant for a 30-year period, following which it will be transferred to the government of Uganda for a nominal price of US one dollar.

“At its heart, the Bujagali project is a Ugandan project. It is a Ugandan success story and I would like to thank the President for having led this initiative in a way where this unique public private partnership was able to move forward,” said His Highness the Aga Khan at the ceremony. “This project has not stopped at the delivery of energy. It is investing in education, healthcare and social development, and all those aspects which improve the quality of life of people who live within the ambit of the project. I think this is an important lesson to be learnt, because ultimately the goal is to improve the quality of life of people in the most complete manner possible,” he further added.

The plant, construction of which commenced in August 2007, not only guarantees adequate power generation for Uganda in the medium-term, but, importantly, lowers the base cost of electricity in the country. Bujagali comprises five units of 50MW each, commissioned in phases between February 2012 and June 2012.

“That a project of Bujagali’s size and complexity has been completed on time and within budget whilst adhering to the highest technical as well as social and environmental standards is a huge testimony to the quality and experience of the sponsor, development and construction teams, with whom I am truly proud to be associated. The Bujagali experience is invaluable and we will certainly draw from it when developing future projects in the region,” observed Mr. Nizar Juma, the Chairman of Bujagali Energy Ltd.

Uganda’s electricity demand has been growing by 10% every year, while supply prior to the commissioning of Bujagali has remained stagnant. Frequent load-shedding accounted for between 1 to 1.5% loss to Uganda’s GDP, thereby slowing the country’s economic and social development. Since its commissioning, Bujagali has replaced over 100MW of expensive rental generation, saving the government over US$9.5 million per month in subsidies. It is expected to be an important catalyst for accelerated social and economic growth throughout the region.

The project serves as an example of a highly successful public-private partnership model, ideal for replication throughout the region.

Speaking at the event, David Foley, Senior Managing Director and Chief Executive Officer of Blackstone Energy Partners, said “Bujagali showcases how successful partnerships between the public and private sectors can create development opportunities for growing economies. Blackstone is proud to have played an important role together with our partner, His Highness the Aga Khan, in the development of Bujagali, the successful completion of which is a credit to President Museveni and the leadership of the Government of Uganda. Africa is a resource-rich continent and is primed for the development of hydroelectric power generation facilities like Bujagali. On behalf of our investors, Blackstone has invested billions of dollars of equity capital to build energy businesses on four continents around the globe and will continue to invest in emerging market countries to provide them with affordable, safe and reliable energy to sustain their economic growth.”

During the peak of construction, Bujagali Hydropower Plant employed approximately 3,000 workers, of which 2,000 of the most highly skilled continue to positively contribute to the Ugandan power sector, and also to the country’s construction industry. The plant has also led to improved community services such as clean water supply, improved education and health facilities in nearby villages, micro-credit funds to surrounding rural populations and enhanced infrastructure. Access to electricity is also being provided.

The Plant has been registered as a Clean Development Mechanism (CDM), making it the largest CDM project registered in a Least Developed Country. Bujagali will yield an average of 900,000 Carbon Dioxide Emission Reductions (CERs) annually, putting it at the forefront of clean energy efforts.

Bruce J. Wrobel, Chairman and Chief Executive Officer, Sithe Global who was also present at the commissioning said, “We believe that projects like Bujagali, which has both impacted the energy sector in Uganda in a far-reaching positive way and mitigated the ecological footprint of a generation, is the key to sustainable development. We are proud to have joined our partners, the lenders and the Government of Uganda in bringing this project to a reality and it is gratifying to see the impacts the project is already having, not only by making available ample, clean, renewable energy, but also by having a positive effect on the lives of the people living in the community and region around this project.”

The project was also made possible by support from a number of other lenders: International Finance Corporation (“IFC”), the European Investment Bank, African Development Bank (“AfDB”), Nederlandse Financierings-Maatschappij voor Ontwikkelinsslanden N.V. (“FMO”), Societe de Promotion et de Participation pour la Cooperation Economique (“Proparco”)/Agence Francaise de Development (“AFD”), DEG-Deutsche Investitions-und Entwicklungsgesellschaft MBH (“DEG”) and KfW. Barclays/ABSA Capital and Standard Chartered Bank are providing commercial debt under an International Development Association (“IDA”) Partial Risk Guarantee, while MIGA is providing insurance guarantee cover for Sithe Global’s equity.

For more information, please contact:

Contact: Bujagali Energy Limited (BEL)
Dr Kevin Kariuki
kevin.kariuki@ipskenya.com
+254-20-3280000/2228026

Semin Abdulla
Aga Khan Development Network
semin.abdulla@akdn.org
+33344584000

Oriane Schwartzman
Public Affairs
Blackstone
Oriane.Schwartzman@Blackstone.com
+1-212-390-2250
Last edited by kmaherali on Wed Oct 10, 2012 5:32 pm, edited 11 times in total.
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East Africa power supply gets boost as new plant launched
Wednesday, 10 October 2012 22:29

By Alawi Masare
The Citizen Reporter
Jinja.The East African electricity pool got a boost thanks to the just completed Uganda’s 250 megawatt Bujagali hydro power plant on Nile River. The $900 million investment project was inaugurated by President Yoweri Museveni and His Highness the Aga Khan just a day before Uganda’s independence celebrations that took place on Tuesday.

The plant – cited by His Highness the Aga Khan as proof of a successful public private partnership – was a joint venture between the government of Uganda and The Aga Khan Development Network (AKDN) and has five units each generating 50 MW on River Nile.

Speaking at the power plant commissioning ceremony, Pesident Museveni could not hide his excitement over the project.“There is nothing one can do to bring about development in the absence of electricity. Thank you for completing it on time and you are welcome for more power projects,” he said.
The first unit was switched on for the first time in February, while the last started operating in June.

It is expected that with the power boost the Ugandan economic growth will rebound at the rate of 1.5 per cent, which reflects the rate at which it was shrinking in recent years.

“In essence, Bujagali project is a Ugandan project. It is a Ugandan success story and again I would like to thank the President for having led this initiative in a way where the unique public private partnership was able to move forward,” said His Highness the Aga Khan.

Bujagali project has been jointly developed by Industrial Promotion Services (IPS), which is the infrastructure and industrial development arm of the Aga Khan Fund for Economic Development, in collaboration with Sithe Global and the government of Uganda.

The plant will be operated by Bujagali Energy Limited (BEL), a company established by the project sponsors and the government of Uganda for the purpose of developing and subsequently operating the plant for a 30-year period, following which it will be transferred to the government of Uganda for a nominal price of $1.

It took five years to complete. It will save the government approximately $9.5 million per month in subsidies necessary to keep electricity tariffs at an affordable level. Since it became operational in June this year, the 250MW power plant has almost doubled Uganda’s electricity supply, currently meeting about 49 per cent of the country’s energy requirements.

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http://www.dailyfinance.com/2012/10/08/ ... naugurate/

By Business Wire via The Motley Fool
Posted 2:05PM 10/08/12 Posted under: Investing
042200

Ugandan President Museveni and Aga Khan Inaugurate Bujagali Hydropower Plant

Established through a unique public-private partnership, the project will drive economic growth and provide clean, reliable power for Ugandans

Completion of project showcases successful public-private partnership for infrastructure development, bringing together the Government of Uganda, Industrial Promotion Services (IPS - the infrastructure and industrial development arm of the Aga Khan Fund for Economic Development) and Blackstone Portfolio Company, Sithe Global
The 250MW hydropower plant has nearly doubled Uganda's electricity supply and virtually eliminated power shortages and blackouts
The total project cost is approximately $900 million

JINJA, Uganda--(BUSINESS WIRE)-- Uganda's President, Yoweri Kaguta Museveni, today inaugurated the 250MW Bujagali Hydropower Plant in the presence of the Aga Khan and project partners Sithe Global, a company majority owned by a fund managed by Blackstone on behalf of its investors. The ceremony, which took place on the eve of celebrations marking 50 years of Uganda's independence, was attended by government officials, heads of State from across Africa, international dignitaries and members of the diplomatic community.

The plant, constructed at a cost of approximately US$900 million, was jointly funded by Industrial Promotion Services (IPS), the infrastructure and industrial development arm of the Aga Khan Fund for Economic Development, Sithe Global Power LLC (USA), a company majority owned by Blackstone Capital Partners IV, L.P., a fund managed by Blackstone on behalf of its investors, and the Government of Uganda. It has eliminated Uganda's previous energy shortage by nearly doubling the country's effective generation capacity (it currently meets 49% of the country's energy requirements) and provides clean, reliable power at lower costs than existing power generating facilities. Construction of the plant commenced in August 2007. It comprises five units of 50MW each, commissioned in phases between February 2012 and June 2012.

Bujagali represents one of the largest privately-funded power sector investments ever made in Sub-Saharan Africa and sets a unique precedent for public-private partnerships. The plant will be operated by Bujagali Energy Limited (BEL), a company established by the project partners to operate and manage the plant, for a 30 year period, following which it will be transferred to the government of Uganda for a nominal price of US one dollar.

Uganda's electricity demand has been growing by 10% every year, while supply prior to the commissioning of Bujagali has remained stagnant. Frequent power shortages and blackouts accounted for between 1 to 1.5% loss to Uganda's GDP, thereby slowing the country's economic development. Since the first unit became operational in February 2012, Bujagali has provided a reliable solution to Uganda's power demands, serving as a catalyst for economic growth and replacing emergency thermal generation costs, thereby saving US$ 9.5 million per month in government subsidies.

Commenting on the role of the Aga Khan Development Network, His Highness the Aga Khan, said, "But let me emphasize that this has also been a global story. As we try to count up the key participants, we find that they come from at least 37 different countries - a truly international network of partners. Those of us who represent the Aga Khan Development Network are proud to have been associated with so many fine allies in this work, including our close, central partnership with Sithe Global and Blackstone."

The project serves as an example of a highly successful public-private partnership model, ideal for replication throughout the region.

Speaking at the event, David Foley, Senior Managing Director and Chief Executive Officer of Blackstone Energy Partners, said, "Bujagali showcases how successful partnerships between the public and private sectors can create development opportunities for growing economies. Blackstone is proud to have played an important role, together with our partner the Aga Khan, in the development of Bujagali, the successful completion of which is a credit to the leadership of President Museveni and the commitment of the Government of Uganda. Africa is a resource rich continent and is primed for the development of hydroelectric power generation facilities like Bujagali. On behalf of our investors, Blackstone has committed billions of dollars of equity capital to build energy businesses on four continents around the globe and will continue to invest in emerging market countries to provide them with the affordable, safe and reliable energy to sustain their economic growth."

The Bujagali Hydropower Project has already impacted the surrounding communities with the creation of approximately 3,000 new jobs for Ugandan workers during peak construction; improved community services such as clean water supply, education and health facilities in nearby villages; the provision of micro-credit funds to surrounding rural populations and the enhancement of infrastructure.

"That a project of Bujagali's size and complexity has been completed on time and within budget whilst adhering to the highest technical as well as social and environmental standards is a huge testimony to the quality and experience of the sponsor, development and construction teams, with whom I am truly proud to be associated. The Bujagali experience is invaluable and we will certainly draw from it when developing future projects in the region," observed Mr. Nizar Juma, the Chairman of Bujagali Energy Ltd.

Bruce J. Wrobel, Chairman and Chief Executive Officer, Sithe Global who was also present at the commissioning said, "We believe that projects like Bujagali, which has both impacted the energy sector in Uganda in a far-reaching positive way and mitigated the ecological footprint of a generation, is the key to sustainable development. We are proud to have joined our partners, the lenders and the Government of Uganda in bringing this project to a reality and it is gratifying to see the impacts the project is already having, not only by making available ample, clean, renewable energy, but also by having a positive effect on the lives of the people living in the community and region around this project."

The Project has also been registered as a Clean Development Mechanism (CDM), making it the largest project ever registered in a Least Developed Country. Bujagali will yield an average of 900,000 Carbon Dioxide Emission Reductions (CERs) annually, putting it at the forefront of clean energy efforts.

The project was also made possible by support from a number of other lenders: International Finance Corporation ("IFC"), the European Investment Bank, African Development Bank ("AfDB"), Nederlandse Financierings-Maatschappij voor Ontwikkelinsslanden N.V. ("FMO"), Societe de Promotion et de Participation pour la Cooperation Economique ("Proparco")/Agence Francaise de Development ("AFD"), DEG-Deutsche Investitions-und Entwicklungsgesellschaft MBH ("DEG") and KfW. Barclays/ABSA Capital and Standard Chartered Bank are providing commercial debt under an International Development Association ("IDA") Partial Risk Guarantee, while MIGA is providing insurance guarantee cover for Sithe Global's equity.

-Ends-

NOTES

BUJAGALI HYDROPOWER PLANT

Bujagali Hydropower Project was established through a public-private partnership model between the Government of Uganda on the one hand and a consortium of the Aga Khan Fund for Economic Development and Blackstone affiliates on the other.

This consortium partnered with the Government of Uganda to form Bujagali Energy Limited (BEL). BEL will own and operate Bujagali Hydropower plant for a 30-year concession period before transferring the plant to the Government of Uganda for US$1.

Please see: www.bujagali-energy.com

Aga Khan Fund for Economic Development (AKFED)

AKFED is an international development agency of the Aga Khan Development Network, dedicated to promoting entrepreneurship and building economically sound enterprises in the developing world. AKFED focuses on building enterprises in parts of the world that lack sufficient foreign direct investment. It also makes bold but calculated investments in situations that are fragile and complex.

Industrial Promotion Services (IPS)

IPS is the infrastructure and industrial development arm of AKFED. It has operations in Kenya, Uganda, Tanzania and DR Congo which employ some 8,500 people, and is also actively pursuing investment opportunities in Rwanda, Mozambique and Madagascar. Outside the East and Central Africa region, IPS also operates in Cote d'Ivoire, Burkina Faso, Mali, Senegal, Tajikistan, Afghanistan, Kyrgyzstan, Pakistan and Canada.

IPS's involvement in power includes the 288 MW Azito gas power plant in Cote D'Ivoire, concessionaire for Energie du Mali (power & water utility), Kenya's 75 MW Tsavo diesel plant and a vertically-integrated off-grid utility involved in generation, distribution and sale of electricity in the West Nile region of Uganda.

IPS is also a partner in the $650 million SEACOM submarine fibre optic cable which became operational in July 2009. The cable links countries in Eastern and Southern Africa to international cables in South Africa, India and Europe. In doing so, the cable provides access to affordable and high quality bandwidth to the Eastern and Southern Africa seaboard, which was previously the only part of the world without access to international submarine cables.

The Aga Khan Development Network (AKDN)

The agencies of the AKDN are private, international, non-denominational development organisations. They work to improve the welfare and prospects of people in the developing world, particularly in Asia and Africa. While each agency pursues its own mandate, all of them work together within the overarching framework of the Network so that their different pursuits interact and reinforce one another. The AKDN works in 30 countries around the world and employs approximately 80,000 people. The AKDN's annual budget for non-profit development activities is approximately US$ 625 million. The project companies of AKFED generate revenues of approximately US$ 2.3 billion annually. All surpluses are reinvested in further development activities.

Please see: www.akdn.org

Blackstone

Blackstone (NYS: BX) is one of the world's leading investment and advisory firms and is an experienced and active investor in the energy and natural resources sector. Funds managed by Blackstone have invested/committed approximately $6 billion in the sector to date across four continents. The firm seeks to create positive economic impact and long-term value for its investors, the companies it invests in, the companies it advises and the broader global economy. Blackstone's alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-oriented funds and closed-end mutual funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services.

Please see: www.blackstone.com

Sithe Global

Sithe Global Power, LLC (Sithe Global) is 99% owned by funds managed by Blackstone. Blackstone purchased an 80% ownership interest in Sithe Global in 2005 and subsequently increased it to 99% in 2011 with the objective of facilitating Sithe Global's plans to develop, finance, construct and operate electric power generation facilities in the U.S. and certain other international markets. Sithe Global has a portfolio of power projects in various stages of development and construction in the Philippines, India, Africa, Europe, the Middle East and other regions totaling approximately 5,000 MW of generating capacity. Sithe Global also continues to pursue other opportunities within Africa.

Sithe Global is led by a seasoned management and technical team with extensive independent power project development experience, and a proven record of identifying project development and acquisition opportunities which create substantial value for its investors. The Sithe Global management team has successfully developed over 50 power projects in nine countries with a capital investment in excess of $5 billion.

Please see: www.sitheglobal.com
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Post by kmaherali »

A Global Project for Uganda
Festive inauguration of the new hydropower plant in Bujagali


http://www.kfw-entwicklungsbank.de/eban ... _42731.jsp

Uagandas president Yoweri Museveni, his First Lady Janet Museveni and Karim Aga Khan IV. surrounded by employees of the hydropower plant in Bujagali. Source: Aga Khan Development Foundation / Gary Otte

"The new power plant ensures for the first time a stable, reliable and sufficient supply of electricity," emphasised Yoweri Museveni, the long-standing Ugandan President, in his speech. "In this way it makes a key contribution to greater prosperity and development." Nearly all the heads of government of the neighbouring countries came to the festive inauguration of the first privately-operated hydropower plant in Sub-Saharan Africa. They also celebrated 50 years of Ugandan independence. The hydropower plant has model character. It not only puts an end to the massive bottlenecks in the electricity supply of the African country, thereby contributing to economic growth, but also simultaneously makes important progress in protecting the environment.

The hydropower plant in Bujagali was realised in partnership between the Ugandan government and private investors. KfW Entwicklungsbank and DEG contributed 45 million US dollars to the financing. Another important sponsor is the Aga Khan Foundation. "Bujagali is not only a Ugandan but also a global project. People from 37 nations have contributed to help make this innovative idea a reality," praised Aga Khan, who participated personally in the inauguration ceremony.

Disastrous Energy Shortage
Up to now Uganda suffered under an ongoing energy shortage. Every day power was cut for up to 12 hours. Enterprises had to repeatedly cope with production losses because machines suddenly stopped, while lights went out in hospitals during emergency operations at night.

Until now the government was forced to meet electricity needs in a makeshift manner by using expensive and environmentally harmful emergency generators. The generators, which run on diesel and heavy oil, produced 40 per cent of the electricity thus far. The high costs could only be met through massive government subsidies. Nevertheless the electricity tariff is extremely high. In Uganda a kilowatt hour costs 15 euro-cents and thus almost as much as in Germany, but with an annual per capita average income of 340 US dollar. As a result few inhabitants can afford the electricity. Merely twelve per cent of Ugandan households have an electricity connection at all, meaning only a small, relatively wealthy elite benefit from the subsidies in the electricity sector.

Energy Transformation Thanks to Hydropower
The new hydropower plant in Bujagali should change this precarious situation. The plant expands the country's electricity capacity by more than 50 per cent so that electricity demand in Uganda can be met in the coming years. The conversion to hydropower also reduces the annual emissions of carbon dioxide by 1.5 tonnes.

The launch of the hydropower plant ushers in an energy transformation in Uganda: "Providing affordable, green electricity is an important contribution to solving the current energy crisis in Uganda and leads to a significant increase in electricity generation thanks to climate-friendly hydropower," praised Norbert Kloppenburg, member of the Executive Board of KfW Bankengruppe, at the time.

But Bujagali will not only protect the environment in the future, as social and environmental measures were already included during the hydropower plant's planning and construction so as to design this large project in a socially and environmentally compatible manner. To compensate for lost pasture land and wildlife preserves, a large conservation area will be created south of the dam. In addition a total 85 households numbering 630 people had to be moved. According to newspaper reports the inhabitants are nevertheless pleased with the waterworks as they received financial compensation for the move. With this money they can now finance their children's education or increase the size of their livestock.
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Post by kmaherali »

2012:THE GOOD, THE BAD, AND THE UGLY

Excerpt:

The completion and final commissioning of the US$900m 250MW Bujagali Hydro Power Dam, the single largest Public Private Partnership in Uganda was another piece of great news to Ugandans, especially the private sector. The project developed by a consortium of big names consisting of: Sithe Global, Blackstone, IPS, Agha Khan Fund for Economic Development and the republic of Uganda added to the ever shrinking power equation, a much needed 250MW, eventually wiping out the power deficit.

http://www.theceomagazine-ug.com/news/2 ... -ugly.html
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Post by kmaherali »

Article on Bujagali Project

Proactive Ismaili Imam:
His Highness the Aga Khan


/ismailimail.files.wordpress.com/2013/01/article-bujagali-hydroelectric-power-project-by-noori-mamdani.pdf
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https://allafrica.com/stories/202105280824.html

Uganda: Bujagali Dam - Communities Count Losses From Tourism, Fishing

28 May 2021
The Observer (Kampala)
By Miriam Watsemba

To imagine those fun-loving, testosterone-packed young men that used to fling themselves into Bujagali falls to entertain tourists, now digging pit latrines for a living! Or hundreds of fishermen walking away from the only source of livelihood they have ever known. MIRIAM WATSEMBA visits Budondo village, home of Bujagali falls, to count the losses. And gains.

"The Nile is not of significant importance to people anymore," says Hellen Awori, a 32-year-old, born and raised resident of Budondo village where Bujagali falls were once located.

According to Awori, after the construction of Bujagali dam started in 2007, River Nile stopped benefiting the residents in her locality.

"At first we thought it was going to bring us development, but it seems it even took away what we had before."

Awori says the place, once world-known for white water rafting, is not as busy as it used to be.

"Some people in Budondo do not have the opportunity to even use that electricity."

Bujagali falls was once a magnet of unending tourism and a source of livelihood to thousands of people living and working along the Nile; the new dam has left hundreds of locals unemployed and displaced.

Henry Kalulu, 43, says he was given Shs 2m by BEL (Bujagali Energy Limited) in 2003. He, however, had no idea how to start over and create a sustainable living for the rest of his life with just Shs 2m.

SAD REALITY

A former professional swimmer who used to entertain tourists at a fee by jumping into the roaring rapids, Kalulu has since resorted to digging pit latrines in Budondo village and heavy drinking to escape his sad reality.

The resettlement and compensation of affected people like Kalulu is said to have been done under the observation of Inter-Aid, which was appointed for the role by BEL in December 2007, after delays.

In a bid to increase electricity production and supply, Uganda is on to its fourth and fifth hydroelectricity dams, within a span of just 10 years. All these constructions will equal to disruption in the nature of three mighty natural waterfalls namely; Karuma located on the Kampala-Gulu highway in Kiryandongo district, Isimba falls near Kayunga town and Bujagali.

But none will possibly land a direct hit on locals like Bujagali. In a phone conversation with Dr Tom Okurut, the executive director of National Environment Management Authority (NEMA), he acknowledged that there are lessons that have been learned from the Bujagali dam construction.

"For the new projects, we have perfected the conditions. Arising from Bujagali, we are now doing Isimba and here we have created special conservation areas because we know, when flooding takes place, some of those things that disappeared could be conserved," says Okurut.

The special conservation areas for Isimba are called Kalagala offset, and they have been gazetted as 'no work zones'. People are not allowed to encroach on the area. This is to allow nature to take its course and provide an alternative site or compensation for all the nature that will be submerged after construction of the new dam.

Isimba and Karuma falls follow the long-forgotten Rippon falls that gave way for the Owen Falls dam in the early 1950s - now renamed Nalubaale dam.

Bujagali falls where construction of a dam started in 2007, and was submerged in 2012 when Bujagali hydropower plant was launched.

At a cost of $902m, the construction of Bujagali dam promised generation of 200 -250MW of hydropower, reduction in load shedding, and a decrease in the cost of electricity in the country. After construction, however, the dam could only produce 121MW of electricity, leaving many people in rural Uganda unable to afford this electricity as prices instead increased.

In fact, for many in Budondo, the only electricity they see is in the pylons ferrying it from their village to faraway lands.

END OF AN ERA

Fifteen years down the road, life has folded for the majority of locals in Bundodo whose livelihoods entirely depended on Bujagali falls and the tourists it drew.

The construction of the dam resulted into a backflow that, according to the locals, led to rapidly increasing water levels. Within 48 hours of completion of the dam, islands and properties including hotels and farm gardens more had been submerged.

The waterfall and rocks that surrounded it were now invisible, leaving behind a 'manmade lake."

Ben Kamya, 32, a resident of Budondo, is one of those who received no payment or support whatsoever. Having worked as a safety kayak expert on the Nile for more than 10 years, Kamya has now resorted to subsistence farming to feed his family.

Kamya says he is no longer concerned about the Nile, neither does he visit it anymore, despite the fact that his home is at a climbing distance of about 300 metres from the Nile.

Before the construction of the dam, Kamya worked at the Nile and took time to regularly slash bushes at the banks, remove the water hyacinth and ensure that the banks were clean.

For Eria Damba, 95, one of the oldest fishermen in Budondo and also the 'gawunga wa bavubi' meaning leader of the fishermen in Kyabirwa, Namizi and Luyala villages, the dam completely robbed the fishing community of over 400 fishermen that he leads. He says there is barely any fish left to catch, especially with the increased water levels and government restrictions on fishing in the river.

Henry Bazira, a researcher with the National Association of Professional Environmentalists, warned that the flooding will change all the characteristics of the water body here and it will disrupt the entire ecosystem.

In an interview with the BBC on April 27, 2007, he warned, "The micro-climate will change and we don't know what the impact of that will be".

"The fish did not just disappear, they were forced to migrate" says Damba. He believes that what modernity calls 'bad methods of fishing' is an escapism theory from the real cause of the decline in fish quantities in the water.

He says the water backflow and consequential flooding caused by dam construction led to contamination of the river water, killing the fish.

"The flooding was inevitable. But even the fish which disappeared have now come back," Dr Okurut tells me when I mention the issue of fish reduction.

Budondo paying the price

According to Damba, most of the land and other properties that were submerged by the new manmade lake, were filled with litter, harmful waste and plastics which had been a part of the main land for decades.

"There is no way the fish would survive that kind of pollution!" he adds with a tone of disappointment.

Damba believes 'bad fishing methods' contribute so little to the disappearance of fish in the waters of River Nile, and looks at their prohibition as an indirect oppression of the local people for sins committed by the rich.

He speaks of the days when fishermen took pride in cleaning up the river banks, slashing and general maintenance of the river which he says is now history, because the river is not for the community, but for foreigners.

"The rich men have bought off all the land surrounding the river now."

Zachariah Mugabe, 40, the chairman of the landing site that used to be the welcome place from where people viewed the magnificence of the waterfalls, says, "We have no landing site now, as you can see." He points far off at the stretch of water, narrating how all that used to be a working place for fishermen, merchandise and food vendors, tour guides, restaurant owners, hundreds of employees including porters and security guards.

Ali Buyende, 26, the manager of Expert River Tubing and an expert in eco-tourism, believes tourism will never be the same in Bujagali.

"At any given time of day, there would be hundreds of people down there visiting the falls, especially bazungu [whites]" says Buyende, which is no longer the case. "If we walked down there now, we would find one or two people, smoking and killing time."

There has been total disruption and reduction in tourism activities such as rafting, kayaking, boat rides, water gymnastics and entertainment on one hand, and on the other, activities such as birding, Bujagali shrine, community walks and fishing adventures.

Okurut says the water rafting was moved further downstream to Itanda falls. However, Buyende insists the tourism industry has tried to recover by exploring new spots on the Nile, especially those ahead of the dam, but it can never match the thrill and attraction of Bujagali.

This has forced them to cut the prices for some of their activities such as water rafting, tubing and boat cruises.

All not lost

Mulongo Alamanzani Wasswa, a fisherman on the Nile, says he used to make extra income from fishing with tourists, but the business was greatly affected.

The tourism momentum was further affected by Covid-19 and the 2020 lockdown in Uganda. However, out of this, the industry has experienced a rise in local tourism, with Jinja becoming a prime destination for Ugandans from Kampala. This has forced tour experts and business owners to find alternative tourism activities on the Nile.

Paul Wesina, 27, the founder of WEMA (Waste and Environment Management Association) in Budondo, says the entire ecosystem of both nature and tourism was altered. He says tampering with the river's natural flow submerged a lot of forest cover, causing forced bird migration and this has had effects on birding, which was a huge part of the activities at Bujagali.

"All environmental work is risky. You need to identify the risk and you mitigate. And that is what we did. We carried out an analysis, which means we okayed the mitigating propositions of the contractor and they also agreed to our propositions," says Okurut.

In February 2005, the Ugandan Government announced it would go ahead with the project despite its problems and drawbacks. Construction was launched in June 2007 through a public-private partnership with Uganda Electricity Transmission Company Limited (UETCL) and BEL.

BEL is a special-purpose company set up by affiliates of the Aga Khan Fund for Economic Development and Sithe Global Power.
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