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Isimba Dam Contractor Pleads with MPs over Withheld UGX 154b

The Isimba Power Dam contractor has asked Parliament to compel Government to release 154 billion shillings.
Isimba Power dam construction as of mid October 2017

Audio 2

Isimba Power Dam contractor has asked Parliament to compel Government to release 154 billion shillings it's holding.

The Ministry of Energy and Uganda Electricity Generation Company Limited (UEGCL) is holding 154 Billion shillings for the Isimba Dam Contractor China Water and Electrical Company Ltd until the Bridge is completed.   

China Water and Electrical Company were meant to construct a bridge on top of the 183MW Isimba Hydro Power Project at 568 million dollars but the bridge that was constructed was rejected by the Government. The Contractor then agreed to construct the bridge downstream the river Nile at its own costs.   

However, the company has been complaining that the cost of constructing a new bridge across the Nile is expensive and is requesting additional funds from the government.

Appearing before the parliamentary committee on physical infrastructure chaired by Robert Kafeero Ssekitoleko on Wednesday, Xia Nenghai, the Project Manager Isimba Dam says that they are facing financial difficulties and have been forced to borrow a loan of 15 Million US Dollars from a commercial bank in Spain of 15 Million US dollars to pay the suppliers, labourers and engineers.

He says the bridge being constructed downstream of 800 meters is now halfway complete and will be completed in December at their own cost.  

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He says they cannot abandon the project as they will risk losing over 51 million US Dollars in performance security and retainage money.  

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When the committee inquired about the 24 billion shillings, Nenghai distanced himself from the whereabouts of the missing money. 

The committee which is now finalizing on its report before it presents it to the house, will today with the Finance Ministry seeking to probe the whereabouts of the alleged 24 billion, but also talk about other irregularities in the project.