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 May 2011, several 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
The CAO found the complaint eligible for further assessment in June 2011.  An Ombudsman team has met with the relevant stakeholders on several occasions. The company and the complainants have agreed to undertake a collaborative process to address 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.

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

Status
CAO continues to work with all parties to help them resolve the remaining issues raised in the complaint.

Updated: February 6, 2013