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Uganda- Bujagali Falls Hydroelectric Power Plant
Project |
The Bujagali Falls Hydroelectric Power Plant project was to design, build, and operate a power plant at Bujagali Falls in Jinja province, Uganda to sell electricity to Uganda Electricity Board (UEB), the state utility. The project also included the construction of power transmission lines and associated substations and a reservoir. The total project cost in 2001 estimated at US$582 million.
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IFC Interest |
The World Bank Group’s (WBG) International Development Association (IDA) provided credit guarantees, and IFC provided financing in the form of an “A” Loan of up to US$60 million from its own account and risk management products of up to US$10 million. IFC also was in the process of arranging a “B” Loan of up to US$40 million.
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Environmental and Social Context |
WBG commissioned Acres International to undertake a comprehensive assessment and least-cost analysis of all practical alternatives for meeting Uganda’s future power requirements, results of which were published in the July 2001 draft report “Economic Review of the Bujagali Hydroelectric Project”. The alternatives studied included hydroelectric potential, thermal generational alternatives, as well as a variety of renewable energy technologies. Acres’ analytical process identified a 200 MW hydroelectric plant at Bujagali as the least cost option.
AES Nile Power (AESNP) conducted 254 meetings with local residents from affected areas; 61 meetings with representatives of cultural institutions; 354 meetings with local and Ugandan government representatives; 146 meetings with stakeholders; 139 meetings with environmentalists and NGOs; 32 meetings with lenders; and 159 meetings with others, plus 185 consultations with national media. It held stakeholder forums in Washington in June 2000 and July 2001, and in Jinja, Uganda, in June 2001. In-country consultations were “witnessed” by a third-party NGO, InterAid, whose Uganda chapter began as an independent observer of AESNP activities in September 2000.
At its full supply level, the project’s reservoir will inundate 80 hectares of land, and 308 hectares of area presently occupied by the Victoria Nile River. This flooding could create concerns of cultural or spiritual effects on the local population. AESNP also conducted a house-by-house consultative process to determine how best to deal with spiritual and cultural matters during all phases of the project, including consultation with professors at Makerere University to identify spiritual custodians. When locations of graves in project-affected areas were known, relatives were consulted.
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| Request to CAO |
Complaint #1
This complaint, lodged by the National Association of Professional Environmentalists, focused on broad issues related to:
- Economic viability of the project;
- Cost to poor consumers;
- Benefit to the people of Uganda; and
- Key issues relating to the World Commission on Dams (WCD) guidelines and their application to the Bujagali project.
Other issues raised by the Complainant referred directly to the activities of IDA. The CAO suggested these matters should be referred to the Inspection Panel, the independent recourse mechanism for IDA and IBRD. The Complaint also referred to issues of corruption and bribery, and the CAO referred this matter to the World Bank’s Fraud and Corruption Unit.
Complaint #2
The Complainant, a Ugandan-born Canadian, claimed that the grave of his grandfather and other graves were located on Dumbell Island, which was to be submerged in the Bujagali Falls reservoir. The Complainant alleged that Bujagali Falls in general, and his grandfather’s gravesite in particular, were sacred sites and should be preserved. The complainant contended that this project did not comply with World Bank Group policies regarding burial sites and protection of indigenous culture and traditions.
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CAO Action |
Complaint #1
The CAO requested that the Complainant consider the CAO’s assessment and comments by IFC management, and then request further intervention if necessary. The CAO did not see a role for facilitation or mediation at the time because the IFC had not made a final decision to participate in the project.
Complaint #2
Given the CAO assessment, the CAO concluded that the evidence provided by the complainant could not be verified.
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Current Status |
Both complaints were closed January 19, 2005. |
Complaint #1
Received |
Appraisal |
Assessment |
Closed |
5 days |
15 days |
30-90 days |
Complaint Closed |
Received June 20, 2001
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Accepted June 28, 2001
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Sept. 2001 |
January 19, 2005 |
Complaint #2
Received |
Appraisal |
Assessment |
Closed |
5 days |
15 days |
30-90 days |
Complaint Closed |
Received July 17, 2001
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Accepted July 25, 2001
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Sept. 2001 |
January 19, 2005 |
This page last updated: 6/21/2006
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