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
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