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dam-l Uganda dam update/LS



The proposed Bujagali Falls dam has suffered more setbacks (two articles
here). Looks like the energy debate in Uganda is pretty lively!

                                    AES Thrown Out Again

                                    The Monitor (Kampala)
                                    July 7, 1999
                                    By Henry Ochieng & Robert Mukasa

                                    Kampala - Parliamentarians yesterday
rejected a third attempt by the government to have them
                                    approve the controversial AES Nile
Power deal.

                                    Debate was furious and candid. Speaker
Francis Ayume came within a whisker of ruling some MPs
                                    out of order for carrying on parallel
debate.

                                    State minister for Finance, Gabriel
Opio, had tabled the motion seeking a resolution of Parliament  giving
government permission to  guarantee capacity payments for electricity by
UEB to AES.

                                    Although the MPs agreed that Uganda is
in dire need of power, they also insisted that attempts to  solve this
problem must be done correctly.

                                    The pandora's box was opened by James
Mwandha (Disabled). Mwandha reminded the House that  Parliament agreed long
ago that government can't give this guarantee without an existing law
regulating the power sector.

                                    "This is a matter of the credibility of
the House. If we are going to commit the country for 30 years,
                                    why don't we wait for three weeks when
the minister says the Electricity Bill will be ready," Mwandha said.

                                    In a voice hoarse with emotion, Mwandha
said he strongly "objects to Parliament's being ambushed and used as a
rubber stamp."

                                    MPs were strongly behind Mwandha,
prompting the Speaker to plead that they allow the motion to
                                    be tabled complete with the reading of
the report of the committee on National Economy.

                                    The House assented and allowed
committee  chairman Isaac Musumba (Buzaaya) to read the 26-page report -
but with several interruptions seeking clarification on nearly everything.

                                    But what really lit the fire against
government was a letter Attorney General, Bart Katureebe, wrote
                                    to the committee June 29 this year.
That letter had advised the committee that the enactment of a
                                    regulatory law is a "condition
precedent" to financial closure by AES.

                                    "It is therefore my opinion that the
agreement may be executed but unless a regulatory law is enacted, which is
a condition precedent, the project might not be implemented as the company
(AES) is unlikely to obtain financing,"
Katureebe's letter read.

                                    Manuel Pinto (Kakuto) raised this issue
and it was glossed over. But Elly Karuhanga wasn't going to  let it rest.

                                    "The A.G's letter shows that the law is
a condition precedent. I'm concerned that this whole matter
                                    has turned into a saga which is
embarrassing everybody. Did the minister of Energy ignore the A.G's
advice," he asked.

                                    Maj Gen. Mugisha Muntu jumped into the
fray: "The mood in the House seems to be quite ugly
                                    and I hope the Leader of Government
Business is watching," he noted amidst the near riotous
                                    atmosphere.

                                    With everybody talking almost at the
same time, an anxious Dr Stanley Kinyatta (Kinkizi East), leapt
                                    to his feet and moved a motion seeking
an adjournment of proceedings until the law is in place.
                                    The motion was greeted with
overwhelming support.

                                    The debate was taken to a new level by
Sir Richard Kaijuka (Sheema North) who had last year - when he was still
minister - promised to
table the power bill.

                                    "This is all partly because of our
confusion in government. The Bill was stopped when there was a
                                    decision to change policy and have a
public utilities commission," he said, provoking laughter.

                                    Kaijuka said that his Bill, then, was
supposed to have catered for the sector only and not all utilities
                                    but now "it seems we are back to single
regulatory body for the sector," he added.

                                    Ben Wacha (Oyam North) stood up and
expressed "embarrassment that the Leader of Government
                                    Business hasn't jumped up to withdraw
the motion."

                                    "Nobody should lecture us on the
country's need for power. It's about time that we do something.
                                    Jesus Christ! Only last week we went
through a fiasco (reference to Referendum Bill controversy -
                                    Ed)," Wacha shouted.

                                    Premier Apolo Nsibambi tried to force
through an amendment that the Kinyatta motion be shelved "until the Bill is
tabled". He was shouted off the floor.

                                    The question was put to the vote at the
prompting of Mwandha.

                                    The Ayes took it. Barring a dramatic
development, AES will have to wait until the Electricity Act is
                                    enacted.

------------------------------------------------
This is about the hydro project that is expected to have fewer impacts than
Bujagali falls (no resettlement, no reservoir):

                               Uganda

                               Norpark, Uganda In Talks

                               New Vision (Kampala)
                               July 6, 1999

                               Kampala - The Uganda government and NORPAK
Power limited have started talks that will lead to the development
                               of the Karuma hydro-electric project. The
talks follow the submission of the project definition report and the
                               business plan for the Karuma project by
NORPAK to government in March this year.

                               The report and plan have since then been
reviewed by government. According to press release signed by Mr. F.A.
                               Kabagambe-Kaliisa, the Energy ministry
permanent secretary, the government and NORPAK reached amicable
                               understanding on a number of important
issues during the recent round of negotiations. "Both parties appreciated
the
                               importance of the power load forecast to
determine the timing for the commissioning of the Karuma hydro-electric
                               plant," the press release reads in part.
Government and NORPAK, the release further said, jointly analysed the
                               various scenarios for the likely growth of
demand for power in Uganda and the East Africa region at large. In this
                               respect, Government informed NORPAK of its
commitment to obtain further power export sale agreements to
                               Kenya, Tanzania and Rwanda.

                               In particular, Government had put in place a
time table with the aim of concluding new export sales agreements with
                               neighbouring countries by April 2000. "It
was agreed that both parties will work closely together to realise these
                               export agreements," it said.

                               NORPAK was also informed of a new initiative
for a rural electrification programme that Government was
                               developing with the World Bank.



                               Copyright (c) 1999 New Vision. Distributed
via Africa News Online (www.africanews.org).

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      Lori Pottinger, Director, Southern Africa Program,
        and Editor, World Rivers Review
           International Rivers Network
              1847 Berkeley Way, Berkeley, California 94703, USA
                  Tel. (510) 848 1155   Fax (510) 848 1008
                        http://www.irn.org
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