Thursday, December 16, 2010

Bujagali line cost may skyrocket

FYI

http://www.newvision.co.ug/D/8/220/741133

Bujagali line costs may skyrocket

Tuesday, 14th December, 2010    



By Ibrahim Kasita

THE cost of constructing the transmission link for the 250MW Bujagali hydropower project is likely to go up, a scenario that will keep electricity end-user tariffs high, the project engineers have indicated.

Jyoti Structures, an Indian firm construction the $76m interconnection project, attributed the rise in project costs to deviation from the original plan.

“We had to avoid the swampy areas at Lubigi,” Rajesh Pandey, the senior project manager, disclosed.

“We had to divert the transmission corridor two kilometres away from the original route. This has to affect the project costs.”

The revelation comes at a time when there were concerns that the cost of the Bujagali dam was crossing the$1b mark, making it the most expensive dam in the world.

The multi-donor sponsored project encountered “unfavourable ground conditions,” necessitating significant redesign and construction of a new major structure related to the special gates in order to safeguard the safety of the dam.

This, experts say, has pushed the project cost up, causing fears that this would be transmitted to the end-user tariffs.

When Bujagali project was conceived and appraised, it was expected that a unit of power would cost $6 cents, but engineers familiar with the project now estimate that a unit will cost $13 cents. The project was meant to increase power supply at lower costs.

The interconnection project is for the Uganda Electricity Transmission Company to supply power to the national electrical grid. It strengthens the evacuation of electricity.

It includes a 70km line to convey power generated to a new substation in Kawanda, on the outskirts of Kampala.

This is in addition to a 17km-line to connect the Kawanda substation to the Mutundwe substation located in the southwest section of Kampala, where minor upgrades are needed to accept the new line.

Two transmission lines stretching five kilometres are being established to interconnect Bujagali and Tororo substation in eastern Uganda and the Nalubaale substation in Jinja.

Similarly, vandalism and theft of electrical equipment has also the on-going construction works.

Angle nuts, stay earth wires and galvanised angle bars for the power pylons (towers) were cut and stolen by unknown thugs recently.

This, project engineers say, might delay and increase the project costs. The negative developments have emerged at a time when Uganda, Kenya and Tanzania had last year agreed to suspend trade in and export of scrap metals to fight vandalism of electrical and water equipment.

Utility companies have on many occasions complained that vandalising their equipment was costing them billions of shillings. The vice risks a regional blackout and threatens security of banks information systems.

http://www.newvision.co.ug/D/8/220/741133

Bujagali line costs may skyrocket

Tuesday, 14th December, 2010

By Ibrahim Kasita

THE cost of constructing the transmission link for the 250MW Bujagali
hydropower project is likely to go up, a scenario that will keep
electricity end-user tariffs high, the project engineers have indicated.

Jyoti Structures, an Indian firm construction the $76m interconnection
project, attributed the rise in project costs to deviation from the
original plan.

"We had to avoid the swampy areas at Lubigi," Rajesh Pandey, the senior
project manager, disclosed.

"We had to divert the transmission corridor two kilometres away from the
original route. This has to affect the project costs."

The revelation comes at a time when there were concerns that the cost of
the Bujagali dam was crossing the$1b mark, making it the most expensive
dam in the world.

The multi-donor sponsored project encountered "unfavourable ground
conditions," necessitating significant redesign and construction of a
new major structure related to the special gates in order to safeguard
the safety of the dam.

This, experts say, has pushed the project cost up, causing fears that
this would be transmitted to the end-user tariffs.

When Bujagali project was conceived and appraised, it was expected that
a unit of power would cost $6 cents, but engineers familiar with the
project now estimate that a unit will cost $13 cents. The project was
meant to increase power supply at lower costs.

The interconnection project is for the Uganda Electricity Transmission
Company to supply power to the national electrical grid. It strengthens
the evacuation of electricity.

It includes a 70km line to convey power generated to a new substation in
Kawanda, on the outskirts of Kampala.

This is in addition to a 17km-line to connect the Kawanda substation to
the Mutundwe substation located in the southwest section of Kampala,
where minor upgrades are needed to accept the new line.

Two transmission lines stretching five kilometres are being established
to interconnect Bujagali and Tororo substation in eastern Uganda and the
Nalubaale substation in Jinja.

Similarly, vandalism and theft of electrical equipment has also the
on-going construction works.

Angle nuts, stay earth wires and galvanised angle bars for the power
pylons (towers) were cut and stolen by unknown thugs recently.

This, project engineers say, might delay and increase the project costs.
The negative developments have emerged at a time when Uganda, Kenya and
Tanzania had last year agreed to suspend trade in and export of scrap
metals to fight vandalism of electrical and water equipment.

Utility companies have on many occasions complained that vandalising
their equipment was costing them billions of shillings. The vice risks a
regional blackout and threatens security of banks information systems.

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