Kenya’s Industrial Promotion Services (IPS), part of the Bujagali Energy consortium is joined by the Aga Khan Fund for Economic Development (AKFED), Jubilee Insurance Co and Sithe Global Power and takes over the project from AES Nile Independent Power, which withdrew from the project in August 2003.
Construction of the roughly $500 million power station is expected to begin this year and take about three years but final development costs and the power tariff will be determined following the finalisation of engineering, procurement and construction contracts.
The project will be developed on a build, own, operate and transfer basis with its output sold to the Uganda Electricity Transmission Company (UETCL). Transfer will take place after 30 years.
The preferred contractor is due to be appointed by June.
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