Name and Location
Karuma hydropower project, Kiryandongo, Uganda.

Client
The Ugandan Ministry of Energy and Mineral Development.

Project Description
The project entails the construction of a 600 MW to 700 MW hydropower plant, in the Kiryandongo district, in western Uganda. The facility will be located about 3 km upstream of the Karuma bridge and 80 km downstream of Lake Kyoga, on the Nile river.

It will feature six 100 MW units; a 20 m concrete gravity dam; a diversion channel; a submerged ogee spillway; a pressure shaft; a downstream surge chamber; an underground powerhouse on the left bank of the Kyoga Nile; and a rectangular forebay, with an inclined trash rack on the left bank of the Kyoga Nile that is inclined at 112º to the dam axis.

Value
The project is estimated to cost $1.3-billion.

The Energy Investment Fund, set up in the country’s central bank in 2006/7, has accumulated $300-million, which is expected to grow to $1-billion in the next five years. The Uganda government has already committed $521-million to the project in the 2011/12 Budget.

Duration
Construction was expected to begin in May 2012.

Latest Developments
Uganda is negotiating with China to obtain funding for the construction of the Karuma dam.

"We have begun negotiations with China to offer us credit to fund the (Karuma) project," junior Energy Minister Simon D'ujanga told Reuters recently. "We hope we'll get them to agree to help us and once they give us the money, they will also supply the contractor so that we don't have to go through protracted procurement procedures."
In February, the Uganda government accused foreign companies of sabotaging the planned Karuma project.

A top government official said that the foreign companies were responsible for the delays dogging the construction of the $1.3-billion plant, as they made it difficult to appoint a contractor through court injunctions.

Key Contracts and Suppliers
Energy Infratech (consultancy services and project management services in two phases).

On Budget and on Time?
Uganda had planned to embark on construction of the plant in mid-2012, but procuring a contractor has proved difficult, with losing bidders contesting the awarding of the contract in court.

Late last year, Italian company Salini Construttori filed an application in the Ugandan High Court, claiming irregularities in awarding the contract to China Water & Electric Corporation.

Salini filed the application on the basis that it was unfairly dropped from bidding, because the Uganda government preferred either the Chinese firm or the Perlite Construction Corporation, of Iran.

This prompted the court to nullify the tender process and order a fresh evaluation of bids submitted by all prequalified bidders. The court also ordered that a new evaluation committee be constituted for the new process.

According to Energy Ministry acting permanent secretary Paul Mubiru, the new committee that has been evaluating the bids has now completed the technical evaluation and is set to start the financial evaluation before announcing the winner.

Contact Details for Project Information
Energy Infratech, tel +91 11 4652 9700, fax +91 11 4651 9724 or email info@energyinfratech.com.
Ministry of Energy and Mineral Development permanent secretary Fred Kabagambe-Kaliisa, tel +256 41 431 1111, fax +256 41 423 4732 or email psmemd@energy.go.ug.