SPI Web Site v1.1
Creating Opportunity Where It's Needed Most
What We Do
AIP Policy in Detail
AIP's Added Value
IFC Projects Database
IFC Projects Database > Projects > Investment Projects
Access to Information Policy
AIP Policy in Detail
AIP's Added Value
Subscribe to Disclosure Documents
Bujagali Energy Ltd.
Environmental & Social Review Summary
This Environmental and Social Review Summary is prepared and distributed in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board of Director’s decision. Board dates are estimates only.
Any documentation which is attached to this Environmental and Social Review Summary has been prepared by the project sponsor and authorization has been given for public release. IFC has reviewed this documentation and considers that it is of adequate quality to be released to the public but does not endorse the content.
Large Hydro - Renewable Energy Generation
BUJAGALI ENERGY LIMITED
Date ESRS disclosed
December 20, 2006
Invested: January 22, 2008
Signed: June 27, 2007
Approved: April 26, 2007
View Summary of Proposed Investment (SPI),
Category & Applicable Standards
Key Issues& Mitigation
Overview of IFC's scope of review
IFC conducted its social and environmental review of the Bujagali Hydropower Project jointly with members of the World Bank Group (WBG) and other senior lenders. The review consisted of appraising technical, social development, environmental, and occupational health and safety information submitted by the Project Sponsors, together with analysis and site visits by lenders’ social and environmental specialists and specialist consultants to IFC and the WBG. Key documents reviewed include the following:
>>Bujagali Hydropower Project, Uganda; Social and Environmental Assessment; Terms of Reference, prepared for BEL by R.J. Burnside International Limited; June 2006
>>Bujagali Hydropower Project, Uganda; Social and Environmental Assessment; prepared for BEL by R.J. Burnside International Limited; December 2006
>>Bujagali Interconnection Project, Uganda; Social and Environmental Assessment; Terms of Reference, prepared for UETCL by R.J. Burnside International Limited; June 2006
>> Bujagali Interconnection Project, Uganda; Social and Environmental Assessment; prepared for UETCL by R.J. Burnside International Limited; December 2006
>> Bujagali II – Economic and Financial Evaluation Study; Draft Final Report; prepared for International Finance Corporation by Power Planning Associates, December 2006
>> Strategic/Sectoral, Social and Environmental Assessment of Power Development Options in The Nile Equatorial Lakes Region; Stage II; Revised Final Report; prepared by SNC-Lavalin International; November 2005
>> Bujagali Hydropower Project EIA (7 vols.); prepared for AESNP by ESG International and WS Atkins; March 2001
The project involves an appraisal, with new project sponsors, selected through an international competitive bidding process, of a hydroelectric project that was reviewed from 1998 through to the fall of 2003, at which point the then proponent, AES Nile Power (AESNP), decided not to carry it forward. The proponent had completed detailed social and environmental documentation, disclosed by IFC in March 2001, the majority of the public consultations and disclosure, and resettlement at the project site. The project is substantially similar and updated from the one previously appraised by IFC; the contractor to be selected by the project sponsors is expected to make design and construction modifications to the project.
The project sponsors have prepared a new comprehensive Social and Environmental Assessment (SEA) to address changes to the design and to the baseline environment in the affected areas, and have conducted additional formal and informal consultations in Uganda regarding the new circumstances of the project. WBG staff has maintained contact with the project in the period since 2003, and participated in consultations. IFC staff visited the project site in March 2006 and reviewed iterations of the SEA in March, September, and November 2006.
Bujagali Energy Limited (BEL or the company) is to develop, construct and maintain an up to 250 MW run-of-the-river power plant on a Build-Own-Operate-Transfer basis on the River Nile, at Dumbbell Island, 8 kilometers north of the existing Nalubaale and Kiira power plants, in Uganda. The company will also design and manage the construction of a 100 kilometer 132 kV transmission line (insulated for 220kV to allow for future expansions) (the Interconnection Project) on behalf of the Uganda Electricity Transmission company Ltd. (UETCL), Uganda’s national transmission company, to strengthen the evacuation of electricity from the project. The project will be an Independent Power project (IPP) and will sell electricity to UETCL under a 30-year Power Purchase Agreement (PPA), which was signed on December 13, 2005. BEL’s headquarters are in Kampala, Uganda.
The project sponsors are Industrial Promotion Services (Kenya) Ltd. (IPS(K)) and SG Bujagali Holdings, Ltd., an affiliate of Sithe Global Power LLC (US) (Sithe Global). The project will be built under an Engineering, Procurement, Construction (EPC) contract issued by BEL; the O&M operator of the plant is expected to be an affiliate company of Sithe Global. UETCL will award the Interconnection Project EPC contract, and own, operate, and maintain the transmission facilities. UETCL will contract BEL to play a management role in the design, procurement, and construction phases of the Interconnection Project.
The hydropower facility will consist of a power station housing up to 5 X 50 MW turbine generators within a 28 m high earth-filled dam and spillway works. The project will require 125 ha of permanent land take and 113 ha of temporary land take for the project’s ancillary facilities. The dam will impound a reservoir extending back to the tailrace area of the Nalubaale and Kiira facilities, inundating Bujagali Falls. The reservoir will be 388 ha (3.88 km2) in surface area, comprising the existing 308 ha of the Victoria Nile, and 80 ha of newly inundated land. The reservoir waters will be contained within the steeply incised banks of the Victoria Nile between Dumbbell Island and Nalubaale, thereby minimizing the amount of newly inundated land.
The associated Interconnection project being developed for UETCL involves the proposed construction and operation of the high voltage electrical transmission infrastructure needed in part to interconnect the proposed Bujagali Hydropower project to the national electrical grid and to strengthen the evacuation of electricity from the project. The proposed IP includes a 70 km transmission line to convey power generated to a new substation to be located in Kawanda, on the outskirts of Kampala; a 17 km transmission line to connect the Kawanda substation to the existing Mutundwe substation located in the southwest section of Kampala, where some minor upgrades will be needed to accept the new line; and, two 5 km transmission lines to establish interconnections between Bujagali and the Tororo substation in eastern Uganda and the Nalubaale substation in Jinja.
Identified applicable performance standards
IFC’s review of the project identified that the following Performance Standards apply:
- PS1: Social and Environmental Assessment and Management System
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security
- PS5: Land Acquisition and Involuntary Resettlement
- PS6: Biodiversity Conservation and Sustainable Natural Resource Management
- PS8: Cultural Heritage
No indigenous peoples, as defined for the purposes of IFC Performance Standard 7, were identified to be resident within the project area of influence.
Environmental and social categorization and rationale
The Bujagali Hydropower Project will involve the construction and operation of a dam in the bed of the Nile River, immediately downstream from a hydroelectric complex, and upstream of protected natural areas as well as other planned hydroelectric facilities. Bujagali will be operated as a run-of-river plant. It will impound a reservoir of 388 ha in surface area (comprising the existing 308 ha of the Victoria Nile, and 80 ha of newly inundated land), and operate in consort with the upstream facilities. Two managed, natural, or protected areas, the Jinja Wildlife Sanctuary and Bujagali Falls will be affected and these impacts will be offset through the designation of new areas to replace those lost due to development of Bujagali.
Land required for the hydropower project has caused several hundreds of people to be affected through physical and/or economic displacement. Although resettlement activities for the hydropower plant were largely completed by the previous sponsor in 2001 through 2003, completion of resettlement related activities are the responsibility of BEL. Development of the project will also affect commercial white water rafting and other recreational activities, use of the river for small scale fisheries by local villagers, and islands and rapids with cultural/religious values for local persons and communities. These impacts are, among other things, being mitigated through a Social and Environmental Action Plan, Assessment of Past Resettlement Activities and Action Plan, and Community Development Action Plan.
Given the current status of project implementation, BEL has not yet fully put in place the staff resources to implement the Action Plans identified above. IFC acknowledges BEL’s commitments to procure this capacity prior to the start of any construction related activities at the hydropower site.
Key issues going forward are fulfillment of resettlement requirements for both the Hydropower Plant and the Interconnection Project as an associated facility of the project, and commitments to offset impacts to biodiversity resulting from the project. Based on the forgoing, the project has potential significant adverse social and environmental impacts and is categorized as A.
Key environmental and social issues and mitigation
BEL has developed plans and programs to address the potential impacts of its operations. The following paragraphs summarize the manner in which BEL addresses the social, environmental, health and safety issues covered by IFC’s Performance Standards.
PS1 – Social and Environmental Assessment and Management System
Development of the hydroelectric potential of Bujagali requires construction of two linked projects: BEL’s Bujagali Hydropower Project and UETCL’s Bujagali Interconnection Project. Social and Environmental Assessments (SEA) have been prepared for both projects to address the requirements of the National Environmental Management Authority (NEMA) in Uganda, the World Bank Group, and other development finance institutions (DFIs), which include African Development Bank (AfDB), European Investment Bank (EIB), and Deutsche Investitions - Und Entwicklungsgesellschaft Mbh (DEG).
Draft Terms of Reference (TOR) for the two SEA reports were circulated to potential lenders in February 2006 and in Uganda in July and August 2006 as part of BEL’s community engagement program. Issues identified during the consultations are addressed in the SEA reports.
The hydropower project SEA assesses cumulative impacts of hydropower and other development on the Victoria Nile in Uganda, including other hydropower dams (Nalubaale, Kiira, and Karuma, and their associated transmission facilities), and other initiatives (environmental offsets, natural areas, parks, reserves, etc.). The potential environmental cumulative effects investigated include:
- possible change in flow regime,
- likelihood of sedimentation, erosion and degradation of water quality effects,
- possible proliferation of invasive aquatic vegetation, and
- loss of natural habitats and resources.
Socioeconomic impacts were found to be generally local in extent.
Nalubaale, Kiira, and Bujagali are separated by Lake Kyoga from Karuma Falls and other potential hydropower locations downstream on the Nile. Further, Lake Albert is located downstream of any identified hydropower options in Uganda, and will minimize any changes in the flow regime at the border with Sudan. Effects of daily peaking would not likely be seen after 5 km downstream of the Bujagali tailrace. The sediment load in the Victoria Nile River is very limited, as most sediment is retained upstream in Lake Victoria. Changes in urban population densities and changes in agricultural practices in the Victoria Lake Basin could have an effect on the water quality flowing to the Victoria Nile, and together with effects induced by the power plants could lead to possible cumulative effects. Water hyacinths are trapped upstream from Owen Falls Dam in Lake Victoria and will not create a cumulative impact downstream. The combined presence of Bujagali and Kalagala on the same stretch of river would have a cumulative impact on issues such as resettlement of people, aesthetics, existing and potential tourism, and biodiversity. Long term protection of the Kalagala Falls and the preclusion of development of hydropower potential at Kalagala is a necessary offset for World Bank Group participation in the Bujagali project.
The Nile River is an international waterway, and pollution and other project-related effects from Bujagali could potentially affect downstream riparians. As noted above, the project is not expected to cause this to occur. Moreover, Bujagali is not expected to affect upstream riparians that border Lake Victoria, as any effects on the lake are determined solely by the operation of Nalubaale and Kiira. In February 2000, the government of Uganda notified the governments of Nile riparian states of the intended construction of the Bujagali hydropower project. Further notifications were issued in 2006. Written agreement was received from the government of Egypt, and this is the only country from which approval is required. None of the other countries has expressed any objections to the project.
Studies conducted by BEL and others and summarized in the SEA reviewed alternative project configurations at, and around, the Bujagali hydropower site to compare the potential power output of the different options, their financial costs and their relative environmental and socio-economic implications. The various analyses have led to the hydropower facility configuration put forward by BEL. Minor modifications to the configuration are expected by the EPC contractor; which will be reviewed by IFC and may be subject to a supplemental SEA, as appropriate.
BEL is a special purpose company established solely for the development, construction, and operation of the Bujagali Hydropower project. During the current development phase, management systems are being developed by BEL’s project implementation team with assistance from the project sponsors.
BEL will have overall responsibility for design and building of the hydropower facilities, and is in the process of selecting a contracting consortium that will construct the hydropower facilities on an EPC basis. The ultimate responsibility for the project’s compliance with Ugandan and international lender legislation and guidelines for environmental and social performance will lie with BEL. However, day-to-day responsibility for implementing environmental and social mitigation, compensation and monitoring actions will in many cases be devolved to the EPC contractor or to third parties. The specific means by which environmental and social management will occur during the construction phase will be finalized upon appointment of the EPC contractor. UETCL will be similarly responsible for the associated Interconnection Project. UETCL will contract BEL to play a management role in the design, procurement, and construction phases of the IP.
BEL is preparing Social and Environmental Action Plans (SEAP) that address the construction of both the hydropower and transmission line facilities as well as the operational phase of the hydropower facility for a 30 year period. UETCL will develop its own SEAP for operation of the transmission line. The hydropower SEAP is an umbrella plan that comprises several components that are to be integrated and implemented by BEL and the EPC contractor. The hydropower SEA includes working versions of three of BEL’s Action Plans (namely the Public Consultation and Disclosure Plan (PCDP), Assessment of Past Resettlement Activities and Action Plan (APRAP), and Community Development Action Plan (CDAP)), as well as frameworks and commitments to other SEAP components; those which are the responsibility of the contractor and BEL’s remaining details for the framework plans will be developed after an EPC contractor has been appointed. BEL has committed to regular updates and disclosure of its SEAPs, as appropriate, going forward.
In order to discharge its commitments under the SEAP, BEL will designate a suitably qualified and experienced Environmental Manager, who will report directly to BEL’s Implementation Manager, and will be provided with sufficient support staff and facilities. It is likely a subset of the environmental management team for implementation will transition to the operations team over the course of the project. The project’s EPC contractor will also designate an appropriately experienced and qualified Site Environmental Officer (SEO), who will be responsible for implementation of the measures set out in the contractor’s Action Plan.
During construction, BEL will have the ultimate responsibility to ensure environmental monitoring and reporting procedures are being undertaken. The SEO will have overall responsibility for the activities of the contractor’s environmental department. On a day-to-day basis the emphasis of the SEO’s work will require working with BEL’s Environmental Manager, and with relevant authorities, local residents and NGOs on environmental issues (i.e. external liaison). BEL and IFC will agree on a suitable arrangement for independent review of monitoring information through construction and initial operations.
BEL’s Environmental Manager will develop environmental reports suitable for submission to NEMA (as a requirement of the Ugandan Environmental Impact Assessment Regulations) and to other stakeholders as appropriate, and will make these reports available in its local offices as well as on its website (www.bujagali-energy.com). Reporting the results of environmental monitoring allows the responsible agencies to identify if any mitigation measure is not being effective and will enable corrective action to be taken.
The project sponsors have carried out extensive consultation with stakeholders, in particular the project affected communities. Given the nature of the project, IFC will verify broad community support prior to a decision on the project by IFC’s Board.
BEL will engage independent advisors to the project through a Social and Environmental Panel of Experts to assist in the assessment process, as well as a Dam Safety Review Panel (see PS 4 discussion below). Consisting of an internationally-recognized social specialist and environmental specialist, respectively, the Panel of Experts will provide ongoing advice to BEL, including the issues identified in the relevant Safeguard Policies and Performance Standards. BEL will also engage an experienced witness NGO to manage its grievance process for external stakeholders.
PS 2 – Labor and Working Conditions
As noted, BEL is a special purpose corporation set up for this project. As such, BEL is effectively a start-up operation that will need to develop its own human resources policy and procedures with respect to the requirements of Performance Standard 2. Uganda is a signatory to the core International Labor Organization labor standards. Thus national law includes the fundamental principles with respect to non-discrimination, freedom of association, forced and child labor. General conditions of employment, e.g., wages, working hours, child labor, in Uganda are covered by The Employment Act, 2006 (Act No 6). Legal provisions for worker health and safety are covered by The Occupational Safety and Health Act 2006 (Act No 9). The company will follow these laws. A draft of the Human Resource Policy and the procedures will be reviewed by IFC before the start of construction.
BEL will use an EPC contractor to build the hydropower dam and associated facilities. The company will, through its contract, require the contractor to apply the same standards with respect to national law, Performance Standard 2, and international practice as it has committed itself. The IFC does not require, according to Performance Standard 2, that the contractors have a human resource policy and a grievance mechanism, but the SEA document commits BEL to ensuring that the EPC contractor has these. Contractors will not be required to have a retrenchment plan when construction is finished and the workforce is demobilized. BEL will monitor the performance of its contractors with respect to these standards, and the EPC contract will contain provisions to ensure that BEL can enforce those provisions. IFC will review the relevant EPC contract to ensure that these provisions are met, and will also review BEL’s monitoring of compliance with the provisions. The EPC contract issued by BEL will also specify occupational health and safety commitments to be observed by the EPC contractor and subcontractors, as well as monitoring responsibilities.
BEL will be responsible for the construction management of the transmission line, and the commitments described above will apply to this project as an associated facility. UETCL will, however, operate the transmission line.
PS3 – Pollution Prevention and Abatement
BEL and the EPC contractor will establish organizations and systems to implement their respective Action Plans, under BEL’s overall control. The EPC contractor will have responsibility for traffic, waste, labor force, environmental monitoring, health and safety, spill contingency, and hazardous materials management. Construction and operation of hydroelectric facilities such as Bujagali involves activities and materials for which pollution prevention and abatement practices are well established.
Emissions of greenhouse gases (GHGs) from hydroelectric facilities occur primarily during construction, from exhaust emissions from construction machinery, and during early operation as a result of decomposition of organic material caught in the impoundment. BEL estimates that one-time GHG emissions from Bujagali would be about 240,000 tons of carbon dioxide (CO2) equivalent. BEL also estimates that a thermal generating plant burning fossil fuels generating the same amount of electricity per year as Bujagali would release about 1.2 million tons of CO2 to the atmosphere. Over its 50-year commercial life, Bujagali will avoid the emission of nearly 60 million tons of CO2. Bujagali will also avoid the potential local health risks of particulate matter, nitrous oxides and sulfur dioxide emissions from the thermal plants.
PS4 – Community Health, Safety and Security
BEL will implement its Emergency Preparedness and Response Plan (EPRP) that will set out the methods for dealing with emergencies arising during both construction and operation, and particularly those with potential effects on the neighboring and wider communities, i.e. persons not directly involved with the project. The EPRP will also set out the means by which these measures will be communicated to affected communities in a culturally appropriate manner. Site security will initially be the responsibility of the EPC contractor, and revert to BEL during facility operation. Normal security levels for a facility of this type will be used, e.g., unarmed, uniformed guards. Access to construction work areas will be controlled, with provisions made for the needs of the local population. BEL and the EPC contractor will establish procedures through the witness NGO to respond to grievances.
BEL is engaging a Dam Safety Review Panel (DSRP) to review the investigation, design and construction of the proposed hydroelectric dam and the start of its operations. The panel will advise BEL on dam safety matters and other matters such as its structures, catchment area, reservoir surroundings and downstream areas. As needed, the panel will provide expert review of associated issues such as the safety of the power generation facilities, river diversions during construction, the implications on safety of the upstream dams – Nalubaale and Kiira, and potential effects of a failure at either of these facilities on the Bujagali Dam.
PS 5 – Land Acquisition and Involuntary Resettlement
AESNP carried out the physical resettlement and payment of compensation associated with the hydroelectric facility in 2001 as part of its Resettlement and Community Development Action Plan (RCDAP) implementation. A retrospective Assessment of Past Resettlement and Action Plan (APRAP), prepared for BEL in June 2006, found that 1288 households and 5158 people were project affected. The number of physically displaced households amounted to 85 households and 634 individuals. The remaining people lost land to the project, but were not physically displaced. Of the 85 households 34 chose to move to the resettlement site in Naminya LC1, while 51 households chose to take cash compensation and relocate themselves.
Performance Standard 5 gives a preference for land-based options, but under Ugandan law, people must be offered cash compensation for their assets. The majority of people relocated chose the cash option out of the belief that they would be able to find better housing for themselves and because it was easier for households to obtain consent with the cash option. The prior project had completed the planned compensation prior to AESNP’s departure. The resettlement housing was also completed, and the 34 families have moved into it. Several activities under the RCDAP were not completed at the time AESNP departed the project; significantly these were primarily income generation activities.
Cash compensation for lost crop land was intended to be used to purchase new agricultural land. However, many recipients of the compensation money spent it on things that either had no relationship to future income generation or on business assets that proved to be failures. To address the requirement for income restoration, BEL has committed to three programs toward that goal: agricultural improvement, fisheries, and small business support and microcredit. These programs are in the community development action plan (CDAP), but with specific budgets earmarked for the project affected people.
There are four rafting enterprises that are using Bujagali Falls as part of their operation. BEL is in negotiations with the companies, including measures such as offering to assist the companies in moving their operations farther down river to Kalagala Falls. According to a tourism study undertaken as part of the SEA report, this relocation will not economically affect the enterprises. To assist those local villages who will be affected by the relocation of the rafting enterprises, BEL is proposing to develop a cultural center near the site of Bujagali Falls and a visitor center at the dam. These centers will provide opportunities for small businesses similar to those near the current Bujagali Falls tourism opportunities.
The Resettlement Action Plan for the Interconnection Project provides measures to overcome the problems with cash compensation observed in the hydropower project resettlement. The RAP procedure calls for a greater effort to encourage people to take the land-based compensation rather than cash. BEL will be involved in the actual compensation and resettlement along the transmission line, but UETCL will be responsible for the long-term outcomes. IFC has reviewed the Resettlement Action Plan and believes that it will lead UETCL to meet the requirements of Performance Standard 5. BEL will monitor the implementation of measures under the responsibility of UETCL, and will collaborate, as necessary, with UETCL to ensure their completion.
PS 6 – Biodiversity Conservation and Sustainable Natural Resource Management
The construction phase of the project will require a temporary land take of 113 hectares. The EPC contractor will be required by its contract to revegetate this area. The Uganda Land Commission will determine whether project affected people will be allowed to return the land to cultivation, its previous predominant use.
The permanent land take will be 125 hectares, of which 80 hectares will be inundated. The land take and the inundation will not impact critical natural habitat. The land take will affect 28.6 hectares of land within the Jinja Wildlife Sanctuary, including 15.8 hectares of land on the islands in the river that have relatively intact native vegetation (out of a total of 26.8 hectares of total island land). This impact on the islands will be off-set by the planting of a 100 meter strip around the edge of the reservoir with native and medicinal trees. The impact on the Jinja Wildlife Sanctuary and the loss of Bujagali Falls will also be off-set by the enhanced protection of the Kalagala Falls and Nile Bank Central Forest Reserves (CFR). BEL will have a role in the development of this off-set as an ecotourism site, in collaboration with the National Forestry Authority (NFA). BEL has recently confirmed the Government of Uganda’s previous commitment to not develop Kalagala Falls as a hydroelectric power site. In addition, the WBG is directly seeking confirmation from the GOU prior to Board.
Construction of the Bujagali dam will have a negligible impact on the flow regime of the Nile. Habitat for haplocromites, an indigenous fish genus of the Nile River basin, may be improved by the impoundment, but this improvement may be off-set by predation from Nile perch and fishing pressure. Migratory species have already been affected by the Nalubaale hydro dam and the adjacent Kiira dam. All the same, the company will monitor migratory fish to identify any changes in population levels.
As described under the section covering Performance Standard 1, the SEA considers alternative designs within the Bujagali hydropower project. The company has, thus, considered the costs and benefits to alternative designs, including the impact on natural habitats and protected areas, and will mitigate, primarily, through off-sets the impacts of the project. The company has consulted with key stakeholders on this issue, in this case the Uganda Wildlife Authority and the National Forestry Authority.
The Interconnection Project will pass through three forest reserves, Mabira CFR, Kifu CFR and Namyoya CFR, with natural, but not critical, habitat. The land take in the Kifu and Namyoya CFRs will be minor, 3.7 and 6.7 hectares, respectively. Land take in the Mabira will be more substantial with 70.4 hectares to be affected, of which 59.2 hectares is forested. The SEA study has determined that there is no reasonable alternative to this route. The SEA proposes a number of measures for UETCL to take in order to minimize the impact, along with payments to the National forestry Authority to be used for enrichment planting to offset the loss of forest. The primary stakeholders - the local communities and the National Forestry Authority - have been consulted on the impact and its mitigation measures. Responsibility for implementing the mitigation measures rests largely with the NFA. UETCL will contribute to the on-going management of the Mabira CFR by paying ground rent to NFA and covering its incremental costs. BEL will monitor progress on these measures and will collaborate, as necessary, to ensure their implementation.
The Interconnection Project line will also pass through Lubiji Swamp near Kampala in order to avoid a greater impact on human habitation. The tower construction is designed to minimize impact on the hydrology of the wetland, which does not contain any critical habitat. A total of 0.7 hectares will be needed.
PS 8 – Cultural Heritage
The original AESNP project had taken substantial measures to address the spiritual values of Bujagali Falls, as well as other cultural heritage issues. BEL will complete all relevant commitments, including a non-denominational service in remembrance of those buried in unmarked graves that will be inundated. The company is having on-going consultations with local traditional authorities and is reviewing whether further appeasement ceremonies will be needed. BEL will also institute a Code of Practice on cultural issues, along with training, for workers and contractors during the construction and operation phases.
An archeological survey was undertaken as part of the hydro plant assessment and no significant finds were made. All the same, the company will contractually require the EPC contractor to have a chance finds procedure in place prior to the start of construction and will monitor the contractor’s performance. Supplemental archeological investigations will be undertaken for any sand pits developed outside the currently defined project area.
An archeological survey of the Interconnection Project is underway, though no cultural heritage sites are known within the proposed corridor. The resettlement action plan for the IP includes provisions for the compensation for and relocation of graves and shrines within the right-of-way.
Client's community engagement
In 2001, the Bujagali project raised a significant level of controversy, particularly among a few members of the NGO community. Its economic underpinning as well as its potential impacts on the surrounding communities and on the environment became the subject of extensive public scrutiny. Recognizing this, the new Project Sponsors undertook an early and effective consultation program. A Public Consultation and Disclosure Plan (PCDP) was developed and implemented that outlines past and planned consultations that have been/will be undertaken in concert with the SEA and community development initiatives. The PCDP built on public consultation and disclosure procedures carried out by the previous project sponsor as well as extensive public consultation carried out by the UETCL Bujagali Implementation Unit (BIU) Team since then, particularly in 2004-2005. The BIU has been engaging the potentially affected communities, and since 2004 has met regularly with each of the affected villages about every 2 months.
Consultation activities by the project sponsors have been organized into initial activities supporting the SEA Terms of Reference (TOR), preparation of the SEA, community development planning, and ongoing project consultation. The Project Sponsors retained the services of a witness NGO (InterAid) to assist them in this process. Most consultations took place from January through August 2006, with a public meeting following in October 2006.
Draft SEA disclosure in accordance with lender and NEMA requirements will extend through the first quarter of 2007, including notices in national newspapers in December 2006 advising the public of the availability of the SEA Report for review and comment at public locations such as libraries, government offices and BEL offices. An optional public hearing may be held at the discretion of NEMA.
Future consultations will focus on the Community Development Action Plan (CDAP) and finalization of proposed community development initiatives to be implemented as part of the project. Once construction has begun, regular communication to the public on the progress of the project including the CDAP and other action plan activities will be made.
IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring them to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities.
In addition, Affected Communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC. The CAO is mandated to address complaints from people affected by IFC-supported business activities in a manner that is fair, objective, and constructive, with the goal of improving environmental and social project outcomes and fostering greater public accountability of IFC.
Independent of IFC management and reporting directly to the World Bank Group President, the CAO works to resolve complaints using a flexible, problem-solving approach through its dispute resolution arm and oversees project-level audits of IFC’s environmental and social performance through its compliance arm.
Complaints may relate to any aspect of IFC-supported business activities that is within the mandate of the CAO. They can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC-financed business activity. Complaints can be submitted to the CAO in writing to the address below:
Compliance Advisor Ombudsman
International Finance Corporation
2121 Pennsylvania Avenue NW
Washington, DC 20433 USA
Tel: 1 202 458 1973
Fax: 1 202 522 7400
The CAO receives and addresses complaints in accordance with the criteria set out in its Operational Guidelines which are available at: www.cao-ombudsman.org
Availability of Full Documentation
The complete set of Category A documentation is available from the World Bank InfoShop:
World Bank InfoShop
1818 H Street, N.W. Room J1-060
Washington, DC 20433 USA
Telephone: (202) 458-4500
Fax: (202) 522-1500
Hours of Operation: 9:00 am to 5:00 pm (Monday through Friday)
The complete set of Category A documentation is also available locally at the following locations:
Bujagali Energy Limited
Kampala Serena Conference Center
P.O. Box 36498
Bujagali Energy Limited
Plot 13 Jackson Crescent
P.O. Box 186
National Environmental Management Authority
NEMA-House, Jinja Road
National Library of Uganda
Plot 33 Buganda Road,
P O Box 4262
Tel: +256 41 233633
Main Library Makerere University Library
Plot 51, Pool Road
Makerere University Institute of Environmental and Natural Resources Library
Plot 51, Pool Road
Kyambogo University Library;
Kyambogo Hill, Nakawa Division
Mukono Christian University Library
Jinja Public Library
Jinja Municipal Council
Uganda Wildlife Society
Plot 94 Kanjokya Street Kamwokya
Kampala City Council Library
Kampala City Hall
The following complete set of Category A documentation regarding the Bujagali Energy Ltd. project has been released locally and to the World Bank InfoShop.
BEL has prepared Social and Environmental Assessments (SEA) for both the Hydropower Project and the associated Interconnection Project. These reports summarize the draft findings and recommendations of the SEA process as of December 2006. Each SEA consists of two volumes:
Hydropower Project (HPP):
- Volume I: Non-technical Executive Summary of the Social and Environmental Assessment (SEA) (also available separately) and SEA Main Report
- Volume II: Appendices to the SEA
Interconnection Project (IP):
Volume I: Non-technical Executive Summary of the Social and Environmental Assessment (SEA) (also available separately) and SEA Main Report
- Volume II: Appendices to the SEA
Consideration of resettlement issues and plans are addressed as part of the SEA documents.
Documentation prepared by BEL is available at:
What We Do
News & Events