Bujagali Dum Project
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 risks are kept confidential; economic calculations are not reliable – how do you know this, International River Network (IRN) has lot of concerns about socio-environmental issues (the costs of the project overcome the forecasts by about 300 mln the government of Uganda and the Word Bank still commit the project). In given conditions the project faces several problems including socio-environmental and economic miscalculations and issues regarding corruption which will make it reasonable to stop the project and to ho on with analysis and researches for alternative projects. 1. Bujagali Dam project is good/bad for the Ugandan people. Uganda’s GDP vs. other sub-Saharan countries’ GDP. Advantages: From the economic and social point of view the construction of Dam will increase economical welfare of Ugandan people by providing certain level of employment both during and after the construction. It will also support the development of other electricity consuming industries. ? Disadvantages: 1. According to AES ' "draft final" environmental impact assessment (1999), Bujagali Dam would permanently displace 820 people, and affect an additional 6,000. Is that a lot, measure in terms of percentage of population. 2. The displaced will be left
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 risks are kept confidential; economic calculations are not reliable – how do you know this, International River Network (IRN) has lot of concerns about socio-environmental issues (the costs of the project overcome the forecasts by about 300 mln the government of Uganda and the Word Bank still commit the project). In given conditions the project faces several problems including socio-environmental and economic miscalculations and issues regarding corruption which will make it reasonable to stop the project and to ho on with analysis and researches for alternative projects. 1. Bujagali Dam project is good/bad for the Ugandan people. Uganda’s GDP vs. other sub-Saharan countries’ GDP. Advantages: From the economic and social point of view the construction of Dam will increase economical welfare of Ugandan people by providing certain level of employment both during and after the construction. It will also support the development of other electricity consuming industries. ? Disadvantages: 1. According to AES ' "draft final" environmental impact assessment (1999), Bujagali Dam would permanently displace 820 people, and affect an additional 6,000. Is that a lot, measure in terms of percentage of population. 2. The displaced will be left