HYDRO POWER AFRICA
Johannesburg South Africa
28 July 2009
PROGRESS ON THE CONSTRUCTION OF THE
BUJAGALI HYDRO POWER PROJECT
By James Baanabe
Commissioner Energy Department
Ministry of Energy and Mineral Development, Uganda.
Project Location
Background
• The Project Promoter is the Government of (GoU)
• The project was originally under development by AES
between 1994 and 2003.
• However, faced by a myriad of problems, AES officially
withdrew from the project in August 2003.
• Bujagali Energy Limited (BEL) was selected sponsor in May
2005. The Shareholders are:
• Affiliates of Industrial Promotion Services/AKFED,
• Sithe Global Power (USA) and Government of Uganda (GoU)..
It is sponsored by industrial promotion Services (Kenya)
Limited and SG Bujagali Holdings Ltd, an affiliate of sithe
Global Power, LLC (USA).
The Project
• The Bujagali Hydropower Project is a 250-
MW power ((5X50MW) hydroelectric
development on the Nile River, 8 km
downstream from Victoria Nile River.
• The project is an Independent Power Project
(IPP) premised on a Build, Own and Transfer
(BOT).
• The project went through extensive
economic, social and environmental due
diligence.
The Project Cont’d
• BEL will sell electricity to UETCL under a 30-
year Power Purchase Agreement (PPA).
• UETCL’s payment obligation under the PPA is
guaranteed by the Government of Uganda
(GOU) through a government guarantee.
• The PPA is backed by a 30-year
Implementation Agreement that includes a
GoU sovereign guarantee and enhanced by a
liquidity facility arrangement.
The Project Cont’d
• Salini of Italy is the EPC contract for the project who
was procured through international competitive
bidding.
• The ‘levelised’ tariffs over 30 years is about US¢6-6.5
per kwh.
• The tariffs will however reach about US¢11 per unit
during debt repayment.
• Bujagali will replace thermal generation that currently
costs US¢25-31 per kilowatt-hour.
• Construction started in 2007 and construction period
initially 44 months. Fist unit to provide power in Mid
2011.
Project Financing• Bujagali will be project financed on a non-recourse basis at a leverage of
more than a 75:25 debt to equity ratio.
• Government of Uganda’s contributions include intellectual property, land
and other assets that were received from AES and passed on to BEL.
Financiers
(MIGA provided insurance guarantee cover for Sithe equity)
Institution(s) Amount
International Finance Corporation US 130m
European Investment Bank ₤100m
African Development Bank US$110
FMO US$73m
Proparco / AFD US$73m
DEG/Kfw US$45m
Commercial Banks Barclays/ABSA and Standard Chartered.
US$115m
Why the Bujagali Project?
• Demand for power is high
– Inadequate generation capacity
Expensive thermal plants in operation till Bujagali is on line.
– The growth in GDP has been affected by inadequate
power supply.
– Growing demand of about 8% annually.
• Support economic growth & reduce poverty
– Least cost power option
– Reduce tariffs
• Affordable tariffs
• Sustainable
– Reduced subsidies
– Job creation
Project Progress as of June 2009
• Civil works approximately 35 % complete. Power house permanent
works are several months (4-6 months) behind schedule.
• Electro mechanical works progressing according to schedule-
Alstom sub-contractor of electromechanical shows progress as
follows:
– Engineering 91%
– Procurement 75%
– Manufacturing 45%
– Transport 20%
– Overall Project 60
– Switchyard approximately 5%
Transmission Line: First 5 km of T- Line was completed . Foundation
works are ongoing in several Sections of the T- Line. Two sections
of the T-Line still have issues of compensation to be resolved.
Regional Power Trade
• To enhance energy security in the region, there are
plans Under Nile Basin Initiative (NBI) and the Nile
Equatorial Lakes Subsidiary Action Plan ( NELSAP) to
promote regional power trade.
• Main obstacles have been: lack of interconnections
and inadequate power supply. With the construction
of Bujagali and other power projects regional power
trade will be possible.
• Regional Projects under the East African Power
Master plan:
• Uganda-Kenya (220kV, 230km),
• Uganda-Tanzania ((220kV, 510km); and
• Uganda-Rwanda (132kV, 230km).
Existing and planned interconnections
DRC
ZAMBIA
ETHIOPIA
Erection Bay And Gravity Dam Progress as of 02.06.2009
Units 3, 4 & 5 Progress – View From D/S
Gated Spillway – Slabs SBS1, SBS4 & SBS2
A ground condition ( schist ) traverses the path of the spill discharge. Work on this section
was temporarily stopped pending suitable design solution. Three options are available for
consideration .
Left Stepped Embankment Dam Construction Progress.
Progress was delayed by slide requiring change of excavation
design , method statement and grouting.
Total Excavation to date = 129,253m3.
Excavation to new design completed after October
2008 landslide.
Jet Grouting Works in progress
