AfDB Approves Compliance Review of Bujagali Power Projects

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AfDB Approves Compliance Review of Bujagali Power Projects

Tunis, 11 September 2007 - The Board of Directors of the African Development Bank (AfDB) Group has authorized a Compliance Review of the Bujagali Hydropower and the Bujagali Interconnection projects in Uganda. The Board gave the approval last week in Tunis, under the rules and procedures of the Bank Group’s Independent Review Mechanism (IRM).

The IRM has been established by the AfDB Group to manage complaints submitted by people, who allege they are likely to be adversely affected by Bank-funded projects. The objective of a compliance review is to establish whether or not the Bank has complied with its own policies and procedures in the process of preparing and implementing the project in question. In case a non-compliance, the review panel will recommend remedial actions to the President and the Boards of Directors.

The Bank Group’s Compliance Review and Mediation Unit (CRMU) on May 16, 2006 received a Request for a compliance review from Ugandan NGOs and individuals. The Requestors claimed that a number of Bank Group policies and procedures had been violated during the preparation of the Bujagali projects. Earlier this year, the Bank Group approved a loan of US$ 110 million for the Bujagali Hydropower Project and USD 28 million for the related Interconnection Project. The project will finance, build and operate a 250-MW run-of-the-river power plant on the White Nile River near Jinja. The associated Bujagali Interconnection Project will link the power plant to the national electricity grid via the construction of about 100 km of 220 kV and 132 kV transmission lines and associated substations.

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