Compliance Advisor Ombudsman

Complaint
The Bujagali Energy project involves the development, construction, and maintenance of a run-of-the-river power plant with a capacity of up to 250 MW on the River Nile in Uganda.  Bujagali Energy Limited also manages the construction of approximately 100 kilometers of 132 kV transmission line on behalf of the Uganda Electricity Transmission Company Ltd. to improve transfer of electricity from the plant.

Bujagali Energy Ltd is owned by Industrial Promotion Services (Kenya) Ltd. – the industrial development arm of the Aga Khan Fund for Economic Development and SG Bujagali Holdings, Ltd., an affiliate of Sithe Global Power LLC (US). IFC and MIGA are supporting the $750 million project along with several other international financial institutions, including the International Development Association, African Development Bank and European Investment Bank.  IFC’s investment comprises $100 million in A and C loans, and MIGA issued a $115 million guarantee to World Power Holdings Luxembourg S.à.r.l., a subsidiary of Sithe Global Power, for its investment in the project.

In March 2011, eleven former employees involved in the construction of the plant filed a complaint with the CAO on behalf of themselves and more than 30 former employees.  The complainants believe they have not been properly compensated by the plant’s sub-contractor after they suffered injuries sustained in the course of their work.  The complainants also raise concerns regarding the transparency of the compensation process and intimidation against workers requesting their benefits.

CAO Action
The CAO found the complaint eligible for further assessment in March 2011.  An Ombudsman team travelled to the field in May 2011, and made several follow up visits to discuss the issues with the parties and other key stakeholders.  The company and the complainants have agreed to undertake a collaborative process to address the issues in the complaint with the assistance of the CAO.  An Ombudsman assessment report was completed in December 2011 and is available in English and Luganda at the link below.

Status
The CAO Ombudsman continues to work with all parties toward resolving the issues raised in the complaint and conclusion of the case. 

Updated: February 6, 2013