By Mulengera Reporters
Parliament has approved a request by the Ministry of Energy for an additional UGX 89 billion to supervise correctional works at Karuma and Isimba hydropower dams. Of this, UGX 51 billion will be allocated to Karuma Dam, while UGX 38.367 billion is earmarked for Isimba Dam.
The funding aims to allow the contractor to rectify defects and address shoddy work, further escalating the cost of the projects, which have already cost taxpayers UGX 8.18 trillion and UGX 2.074 trillion, respectively.
The approval followed the presentation of a report by Achia Remigio, Vice Chairperson of Parliament’s Budget Committee, on the 2025/26 Budget Framework Paper during Wednesday’s plenary sitting.
“The Committee recommends that the government provides UGX 51 billion for Community Development Action Plan (CDAP) activities and the supervision of Karuma Hydro Power Plant,” noted Remigio.
The Committee on Environment and Natural Resources, which scrutinized the Ministry of Energy’s budget, defended the request, arguing that while Karuma Dam is undergoing its Defects Liability Period—during which the contractor is required to correct faults—it is crucial for the owner’s engineer to effectively monitor the process. MPs stressed that proper oversight is necessary to identify and rectify defects to prevent further structural and operational failures.
Karuma Dam was initially scheduled for completion in 2019, but delays spanning five years pushed its commissioning to 2024. The project’s original budget of $1.7 billion (UGX 6.218 trillion) has since ballooned by 15%, reaching UGX 8.18 trillion.
MPs noted that the additional funds will also support the implementation of the CDAP, which aims to mitigate the strain on local infrastructure, social services, and natural resources in communities surrounding the dam.
Activities under the CDAP include upgrading schools and health centers, electrification, power supply installation, and water provision.
Funding for Isimba Dam
The Ministry of Energy also sought UGX 38.367 billion for Isimba Dam to support supervision, CDAP activities, and the construction of staff housing. Although Isimba is already generating electricity, the ministry highlighted significant structural concerns, particularly defects in the spillway gates, which pose serious dam safety risks.
“It is critical to ensure proper supervision and quality assurance during spillway repair works to safeguard the dam’s structural and operational reliability. Failure to provide adequate funding could result in substandard work, uncorrected defects, regulatory penalties, or even shutdowns,” Remigio warned.
Additionally, MPs emphasized the need for capital investment in staff quarters and other essential infrastructure, which were not included in the dam’s original design.
Karuma Dam was finally commissioned in September 2024 after nearly 12 years of delays, marked by blame-shifting between the Chinese contractor, Sino Hydro Power Company, the Ministry of Energy, and the Uganda Electricity Generation Company Ltd.
The government accused Sino Hydro of slow progress and poor workmanship, while the contractor cited the government’s failure to provide necessary technical designs.
By 2021, reports of defects at the dam had surfaced, necessitating rectification. The latest funding request suggests that these issues remain unresolved.
According to the Electricity Regulatory Authority, the commissioning of Karuma (600MW) and Isimba (183MW) hydropower plants has increased Uganda’s installed electricity capacity to 2,048.1MW—63.7% higher than the 1,251MW recorded in 2019.
However, Parliament’s Budget Committee observed that while Uganda continues to invest heavily in power generation, inadequate investment in transmission infrastructure has led to significant energy losses. MPs urged the government to address this imbalance to maximize the benefits of its electricity expansion efforts-Parliament Watch. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
