Bujagali Dum Project

2349 WordsMar 7, 201110 Pages
Case#5 International River Network and Bujagali Dam Project Astghik Gevorgyan 991153690 David Harutyunyan 991153694 Elen Zargaryan 991153701 5/6/2009 International River Network and Bujagali Dam Project Uganda, a country based in Africa, is one of the poorest countries in the world. Less than 5% of the population of Uganda has access to electricity more because of poverty and low creditability and less because of lack of electricity.AES is considered to be one of the biggest companies in the world and the largest independent power producer is going to construct $530-million dam near Bujagali Falls on the Nile. Though the details of Bujagali Dum project such as the costs, the amount and terms of capacity payment and distribution of…show more content…
So the realization of the project can be considered the minimum condition and the basis for attracting investments and improving the economy of the country. So for the long term plans the Uganda needs electricity. Uganda’s GDP vs. other sub-Saharan countries Country Population Power consumed per GDP (US mil) GDP per GDP per capital annual capital (kWh) capital (%) growth 1990 to 2001 Uganda 22,788 71 5,675 249 3.6 Dem. Rep. of 52,354 73 5,187 99 -7,7 Congo Kenya 30,736 130 11,396 371 -0,6 Rwanda 7,933 18 1,703 196 -1,3 Sudan 31,695 70 12,525 395 3,2 Tanzania 34,450 80 9,341 271 0,4 good 2. Financial aspects of the Dam project. ? Bujagali hydroelectric dam project ($ 582 million) planed to be financed 20% with equity (AES will provide $US 115 million of equity), and 464 million by debt from Word bank’s IFC (at market rates), African development bank, ECA-s and Word bank’s IFA (no interest payment). According to a build-own-operate-transfer 30 year contract AESNP agreed to construct and operate the power plant (without any competitive bidding and minimum transparency – this does seem a bit suspicious ), and Ugandan Energy Board (UED) agreed to manage the transmission line. UEB would be liabilities include paying AESPN 1) Fixed monthly capacity payment irrespective

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