CAO Cases

Arne Hoel, The World Bank

Sub-Saharan Africa

Uganda / Bujagali Energy-05/Bujagali

Local community members
Date Filed
May 16, 2011
Land acquisition, compensation, impacts to health and infrastructure
Case Status
Open - Ombudsman


Project Overview
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 May 2011, community members residing in the Bujagali affected area submitted a complaint to the CAO.  The complainants’ concerns relate to compensation for assets during the land acquisition process, damage to houses and impacts to health related to blasting during construction, and compensation for loss of livelihoods.


CAO Action


CAO found the complaint eligible for assessment in June 2011. CAO met with local stakeholders on several occasions. The company and the complainants agreed to undertake a collaborative process to address issues in the complaint with the assistance of CAO.  An assessment report was completed in December 2011 and is available in English and Luganda at the link below.


A complaint raising some of the same issues was also submitted to the Complaints Mechanism of the European Investment Bank (CM-EIB).  CAO coordinated with CM-EIB throughout the intervention.


Dispute resolution:

As detailed in CAO’s January 2016 Monitoring Report, issues related to loss of livelihoods were resolved in September 2012 and issues related to the transmission line and the hydro site land compensation are in monitoring by CAO’s Dispute Resolution team.


In relation to blasting issues, CAO complainants affected by the issues were not satisfied with the Mediation Solution implemented during 2014 and early 2015 resulting from the mediation process led by EIB-CM and consider the complaint with CAO on these issues unresolved. After consultation with the different parties and request for further mediation by the complainants, Bujagali Energy Limited informed CAO it was unable to participate in further mediation. Therefore, given the voluntary nature of dispute resolution and in accordance with CAO’s Operational Guidelines, the outstanding issues related to blasting impacts were transferred for compliance appraisal in January 2017 (see below).


Regarding the CAO-led mediation on the transmission line issues, complainants' representatives and the Uganda Electricity Transmission Company Ltd. (UETCL) signed a Mediation Agreement wwith the group of 514 complainants, the '557 Group', which was subsequently adopted by the High Court of Uganda as a Judgment of the Court in May 2015. CAO monitored the implementation of the agreement and noted that while UETCL did not fulfill its original commitment in the Mediation Agreement to pay complainants who had accepted compensation during the Disclosure process no later than July 31, 2015, implementation of the agreement is complete. Another group of 16 complainants (Non-557) who were not part of the lawsuit signed an agreement with UETCL in April 2017. Compensation was made to all Non-557 complainants in June 2017. An Individual complainant signed an agreement with UETCL in June 2017 and CAO is monitoring payment of this agreement.

CAO released its Monitoring Report on January 15, 2016, which can be found under "view Documents" below.


Compliance appraisal regarding blasting impacts:

CAO released a compliance appraisal report on March 13, 2017, concluding that an investigation of IFC/MIGA's performance in relation to blasting impacts of the project was not warranted. This aspect of the case has been closed. 



CAO has concluded the monitoring of the two agreements reached in relation to issues related to the transmission line and hydro site land compensation, and is currently monitoring one last compensation agreement reached with an individual land owner.

Status as of March 6, 2018

Project information

Project Name & Number
Bujagali Energy Ltd 24408 (IFC) & 6732 (MIGA)
Bujagali Energy (IFC); World Power Holdings (MIGA)
Sub-Saharan Africa
Environmental Category
$100m A & C loans (IFC), $115m guarantee (MIGA)

Case Tracker


  • Eligible: Completed
  • Assessment Period: Completed
  • Facilitating Settlement: Completed
  • Monitoring/Close-out: In Process


  • Under Appraisal: Closed

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