Museveni Admits Mistakes Over Bujagali Power Tarrifs.

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In short
President, Yoweri Museveni has finally admitted that Bujagali Energy Limited power generation costs are much higher leading to distortion of electricity prices in the country.

President, Yoweri Museveni has finally admitted that Bujagali Energy Limited power generation costs are much higher leading to distortion of electricity prices in the country.
 

Museveni in his State of the Nation address to parliament hinted on the possibility of borrowing cheaper money to pay off the developers of 250-megawatt power dam in Jinja.
 

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Some players in the energy industry and civil society group had raised concern about the high generation cost by Bujagali but government ignored the concerns at the time of construction.
 
Museveni said he was not consulted by the technocrats at time of negotiating the  generation costs
 
The developers according to Museveni hiked the price of constructing Bujagali allegedly on account of expensive money and cost of construction materials at the time the dam was constructed.  
 
Bujagali Energy Limited, a company jointly owned by affiliates of Sithe Global Power, LLC and the Aga Khan Fund for Economic Development.

Construction of the project was completed in July 2012 and began operations in October 2012. It consists of five 50MW turbines. The project cost estimate was revised from $530m to $900m. Originally the dam was to be constructed by US-based AES Corporation with funding expected from the World Bank.

The World Bank Group however o withheld its financing after corruption investigations by the US Justice Department and by the World Bank's Fraud and Corruption Unit. In 2003, AES announced that it was pulling out of the project for economic reasons.

Museveni says the  generation tariff  for Karuma Power dam has been agreed at five cents of a US dollar which about half the price Bujagali is currently charging.

Generation tariff  for Isimba Power dam according to Museveni will be at  4.8 cents of US dollar while an American investor to construct the first geothermal power plant in Kitagata will generate at eight cents of a dollar.