In October, Museveni noted that the power tariffs of the energy generated from Bujagali Power Station is different from Nalubale Power Station and pledged to negotiate for the price to reduce.
According to local media the Monitor, the President announced this week that a team from the World Bank’s International Finance Corporation (IFC) has agreed to further discussions on the prospects of lowering the cost of power generated from the hydro power plant.
The IFC is an arm of the World Bank Group that offers investment, advisory, and asset management services to encourage private sector development in developing countries.
Media reported that power tariffs in the country are expected to be cut from the current $0.113 per unit to at least $0.05.
Costly power hampers industrial growth
“An array of issues was discussed but key being the cost of power from Bujagali that is priced at $0.113 cents per unit. The President indicated that this price was exorbitant and was hampering the country’s industrialisation drive,” the finance institution said in a statement.
The 250MW power plant, owned and managed by Bujagali Energy Ltd (BEL), is a special-purpose vehicle by the Industrial Promotion Services and the IFC is said to be among the key funders of the project.
The government holds a 4.63% stake in BEL, which has a 30-year build-own-operate-transfer concession over the dam, media reported.
It is reported that for several months since the dam was commissioned in 2012, President Museveni has repeatedly complained about the tariffs offered by BEL.
Bujagali Power Station – power tariffs cuts
In his recent statement about negotiating for the electricity tariff to be reduced, Museveni said: “This tariff is only for manufactures and maybe people in the hotel industry and not for preachers at night, Nsenene (grasshoppers) hunters and dancers in night clubs.”