10 December 2008 – Construction of the Nyagak hydro electric dam is due to be accelerated by the contacting of two new companies to the project.
VS Hydro, a Sri-Lankan energy company and Reincon, based in Uganda, have been contract to work together to construct the dam.
According to minister of state for energy, Simon D’Ujanga, "The dam is a critical part of this project. We have got another contractor to take over the job."
Construction on the dam is at least a year behind schedule but the original contractor, Sobetra, would still be responsible for completing the 1.5MW power house. The contracting of the new companies comes after the World Bank threatened to withdraw its funding due to the project delays. The project, which was due to be commissioned in December 2007 will now be commissioned in July 2009.
“We found that Sobetra had their own difficulties and if we left the job to them alone, they wouldn’t finish," D’Ujanga said, dismissing claims that there was political motivation in the delays. “There is no politics in this” he said.
Said Godfrey Turyahikayo, executive director of the rural electrification agency “"VS hydro is a small hydro development player in Sri-Lanka, with a striking portfolio of successfully completed projects in some of the most technically challenging locations." He further warned that monthly penalities would be imposed for contractors causing any further delays.