NGOs Tell World Bank to Reconsider Bujagali Dam
In a May 2002 letter to Executive Directors, 120 NGOs urge the Bank to delay further funding approvals until a report by the Inspection Panel on the dam’s violations of Bank policy is released. They also request a "more realistic" economic assessment of the project, and a release of the project contract in Uganda.
Executive Directors
World Bank Group
1818 H Street, NW
Washington, DC 20433
Re: Bujagali Hydropower Project
Dear Executive Directors,
In December 2001, the World Bank’s Executive Board approved IFC and IDA funding of up to $225 million for the Bujagali Hydropower Project in Uganda. Several other financial institutions – including US OPIC, the United Kingdom’s ECGD, and Germany’s DEG – have declined involvement in the project. Sweden’s EKN has declined for the time being, and the export credit agencies of Norway and Finland have not yet taken any decisions. According to the reputed journal, "Development Today", EKN concluded that the project was "too risky".
Management now hopes to extend a MIGA guarantee of $215 million to the Bujagali project. Such a guarantee would cover the project’s political risk, would pull Nordic export credit agencies back into the funders’ consortium, and would thus rescue the project.
Ugandan and international NGOs have a series of concerns regarding the economic, social, environmental and cultural impacts of Bujagali. Ugandan NGOs and citizens submitted a complaint to the World Bank’s Inspection Panel in July 2001. We assume that the report on Bujagali will be completed very soon, but understand it has not yet been submitted to the Board.
A new report published by International Rivers on May 14, 2002, suggests that World Bank management and staff have seriously manipulated the appraisal of the purported economic viability of Bujagali, and may in fact have misled Executive Directors when support for the project was approved in December 2001. The International Rivers report documents that:
The World Bank’s and IFC’s Project Appraisal Document for Bujagali contains major discrepancies with other relevant Bank documents regarding essential aspects of the project. Discrepancies include figures on crucial aspects of the project, such as the future demand for expensive power from Bujagali.
The World Bank’s and IFC’s project documents misrepresent or withhold critical information from other Bank documents. They misrepresent the outcome of a private enterprise survey, which is used to justify the project, and do not inform readers that reports commissioned by IFC show a combined–cycle plant and geothermal energy to be the least–cost sources of power for Uganda.
The Bank’s and IFC’s project documents neglect evidence from other Bank projects, and from other official sources, on important features of the Bujagali project and Uganda’s power sector. Aspects which have been neglected include the potential impact of climate change on Bujagali’s hydrology.
Finally, the World Bank’s and IFC’s projections have already been proven over–optimistic regarding the growth of Uganda’s export revenues, and overall economic growth.
In conclusion, the International Rivers report puts forward strong evidence that Bujagali is not the least–cost option for Uganda’s power sector, that the project is economically highly unfavorable, and that it will add to Uganda’s debt burden – at a time when the IMF and IDA have recently expressed concern about Uganda’s "very high debt indicators.
Since the Executive Board approved IFC and IDA funds for Bujagali in December 2001, the context of the project has changed significantly. The International Rivers report produces serious evidence that Bank management and staff have misrepresented or withheld relevant information on Bujagali. Export credit agencies have declined involvement for economic reasons, which should encourage the Bank to reconsider the viability of the project. Finally, Uganda’s economic situation and debt outlook have deteriorated sharply since December 2001, as documented by an IMF/IDA report in April 2002.
We recommend that before taking any further decisions on Bujagali, the Executive Board should insist that the following conditions are met:
The World Bank Inspection Panel should submit its report on the Bujagali project to the Board and the claimants, and the Board should have the chance of an informed debate on the Panel’s findings.
A comprehensive and balanced assessment of all options for Uganda’s power sector should be carried out and submitted to the Board for discussion. In particular, such an assessment should take an in–depth look at geothermal power, which appears to be the least–cost option in the assessment done for IFC by Acres International.
If MIGA continues to consider supporting the Bujagali project, the economic viability of the project should be reappraised with a more realistic view of essential project and sector features, and taking into account the recent economic down–turn in Uganda.
The World Bank should request that the Bujagali Power Purchase Agreement be made public, so that the interested public can have an informed debate about the Ugandan government’s long–term obligations under it.
Civil society in Uganda should have the chance of an informed debate about the Inspection Panel report, the conclusions of an effective options assessment and the Power Purchase Agreement. The Executive Board should take such a debate into account before reconsidering the Bujagali project or its alternatives.
Thank you for your consideration of these concerns and recommendations.
Sincerely yours,
Frank Muramuzi, President
National Association of Professional Environmentalists
Uganda
Juliette Majot, Executive Director
International Rivers
USA
Carol Welch
Friends of the Earth/US
OTHER ENDORSERS (listed by country)
UGANDA
Martin Musumba
SAVE Bujagali Crusade
Basalirwa Asuman
SAVE Bujagali Crusade, Makerere Branch
Beatrice Obbo
National Association of Professional Environmentalists (NAPE)
Requester, representing people from Tororo – Eastern Uganda
Kamese Geoffrey
Rio + 10 Coalition: Intergrated Fresh Water Management Thematic Group
Timothy Byakola
Climate and Development Initiatives
Rosemary Namirembe
Uganda Environment Education Foundation (UEEF)
Kimbowa Richard
Uganda NGO Rio + 10 Coalition
Sentamu Somon
Joint Energy and Environment Projects (JEEP)
David R. Mutekanga
Uganda Wildlife Society
Kenneth Kakuru
Greenwatch
Tabaro Denis and Weizire James
Adult Literacy and Basic Education Centre (ALBEC)
Dranda Richard
Adult Literacy and Basic Education Centre, Makerere University
Dr. Waiswa G. Baker
Interdisplinary Teaching of Human Rights, Peace, and Ethics
S. B. Tindifa
Human Rights and Peace Centre (HURIPEC), Makerere University
Kalema Billy
Interdisplinary Teaching of Human Rights Peace and Ethics Project,
Makerere University
F. C. Oweyegha–Afunaduula
Department of Zoology, Makerere University
Kayondo Fred
East African Communities Organization for Mgt. of Lake Victoria Resources
– Mukono District (ECOVIC)
Mugisa Patricia
Organization of Graduate Youth for the Enhancement of Environment
Programmes and Poverty Alleviation (OGYEEPPA)
Alfred T. Balinda
Requester to the Inspection Panel on behalf of Concerned Citizens
Prof. Jassy Kwesiga and Jane Nabunnya
Development Network of Indigenous Voluntary Associations (DENIVA)
Fredric Musisi Kabuye
International Institute for Cultural and Ethical Development
DENIVA Board of Directors
Dick Nuwamanya
ACODE
Bautu Robert
Faculty of Law, Makerere University–Kampala
Isoto Bibian
Faculty of Law Makerere University
Mayanga Dan
Global Insurance Company
Jane Afra Musinguzi
Professional Teacher/Environmentalist
Deo Lubega
Sylivia Birungi
ARGENTINA
Elba Stancich
Taller Ecologista
Jorge Cappatto
Federacion Amigos de la Tierra Argentina (FoEI)
FUNDACION PROTEGER
Roque Pedacce
Amigos de la Tierra Buenos Aires
Anna Petra Roge de Marzolini
Asociacion Ambientalista EcoLaPaz
Susana Garay
MyPIMA –Esquel Chubut
AUSTRALIA
Cam Walker and Damian Sullivan
Friends of the Earth Australia
Kate Walsh
AID/WATCH – Australia
John Sinclair
Fraser Island Defenders Organization
Terrie Templeton
WTO Watch
Community Information Association
BRAZIL
Roberto Smeraldi
Friends of the Earth – Brazilian Amazon
BULGARIA
Galina Georgieva
NM Ecoglasnost/FoE Bulgaria
CANADA
Pamela Foster
Halifax Initiative Coalition
Grainne Ryder
Probe International
CHILE
Juan Pablo Orrego
Fundación Terram
Andrea Munizaga
Comité Nacional Pro Defensa de la Fauna y Flora– Amigos de la Tierra Chile
COSTA RICA
Gabriel Rivas–Ducca
Coecoceiba–Friends of the Earth Costa Rica
FINLAND
Tove Selin
Finnish ECA Campaign
FRANCE
Roberto A. Epple
ERN European Rivers Nettwork
Philippe Lhort
SOS Loire Vivante
Camille de Maissin
Agir Ici
GERMANY
Heffa Schuecking
Urgewald
Heike Drillisch
WEED (World Economy, Ecology & Development)
ITALY
Jaroslava Colajacomo and Antonio Tricarico
Campaign to Reform the World Bank
Elvira Dizon
Franciscan Missionaries of Mary
JAPAN
Ikuko Matsumoto
Friends of the Earth Japan
KENYA
Argwings Odera
Sondu–Miriu Community Advocacy Campaign
INDIA
Medha Patkar
Narmada Bachao Andolan
Ashish Fernandes
Sanctuary Asia
S. Parasuraman
ActionAid
Shripad Dharmadhikary,
Manthan Adhyayan Kendra (Manthan Reserach Centre)
Member of Dams and Development Project Steering Committee
Manoj Saranathan
Friends of River Narmada
INDONESIA
Anung Karyadi
National Coordinator Indonesia for RWESA
Nur Hidayati
WALHI (Indonesian Forum for Environment)/FoE Indonesia
MALAYSIA
S.M. Mohamammed Idris
Friends of the Earth Malaysia and Consumers’ Association of Penang
Malaysia
MEXICO
Cecilia Sánchez
INCIDE, Desarrollo y Estrategias en Comunicacion A.C.
MOZAMBIQUE
Anabela Lemos
Livaningo
NETHERLANDS
Monique de Lede
Friends of the Earth Netherlands
Wiert Wiertsema
Both ENDS
Joyce Kortlandt
Novib
Chelsea Mozen
ASEED Europe – Action for Solidarity, Environment, Equality, and Diversity
NIGERIA
Nnimmo BASSEY
Environmental Rights Action (ERA)/Friends of the Earth
NORWAY
Tonje Folkestad
FIVAS (Association for International Water and Forest Studies)
PAKISTAN
Naeem Iqbal
Pakistan Network of Rivers Dams and People
PAPAU NEW GUINEA
Sanis Kak
Kasela Palu Group
PHILIPPINES
Joan Carling
Cordillera Peoples Alliance
PORTUGAL
Luís Galráo
EURONATURA
Maria Joáo Pereira
Liga para a Protecá"o da Natureza (LPN)
SENEGAL
Demba Moussa Dembele
Forum for African Alternatives
SLOVAKIA
Roman Havlicek
Friends of the Earth – Slovakia
Juraj Zamkovsky
Center for Environmental Public Advocacy
SPAIN
Juan Carlos Rodríguez Murillo
Ecologistas en Acción
SOUTH AFRICA
Liane Greeff
Environmental Monitoring Group
John Taylor
Sustainable Water Forum
Patrick Dowling
The Wildlife and Environment Society of South Africa
Patrick Bond, Professor
University of the Witwatersrand, Johannesburg
SWEDEN
Johanna Sandahl
Attac
SWITZERLAND
Peter Niggli
Swiss Coalition of Development Organizations
Christine Eberlein
Berne Declaration
UK
Alex Wilks
Bretton Woods Project
Sean Scannell
Ilisu Dam Campaign
Johan Frijns
Friends of the Earth International
Nick Hildyard
The Corner House
Chris Woodford
UK Rivers Network
USA
Shiney Varghese
Institute for Agriculture and Trade Policy
Soren Ambrose
50 Years Is Enough Network
Joanne Carter
RESULTS
Paul Jenkin
Surfrider Foundation, Ventura County Chapter/Matilija Coalition
Tom Bolema
High Desert Greens, Antelope Valley
Paula Palmer
Global Response
John Peck
University of Wisconsin Madison Greens
Graham Saul
Bank Information Center
Dan Silver
Endangered Habitats League
Neil Watkins
Center for Economic Justice
Diana Bohn
Nicaragua Center for Community Action
Mara Vanderslice
Jubilee USA Network
Janet Gottschalk, MMS
Alliance for Justice
Marty Bergoffen
Southern Appalachian Biodiversity Project (SABP)
Bruce Rich
Environmental Defense
Shankar Krishnan
Friends of River Narmada
Daphne Wysham
Institute for Policy Studies
Erica Etelson
Project Underground
Rita A. Clark
The Nicaragua–US Friendship Office
Mary Turgi
Congregation Justice Committee/Sisters of the Holy Cross
Sage Douglas Eagle Remington
Southern Ute Grassroots Organization (SUGO)
Southern Ute Indian Reservation
Taleigh Smith
Dos Pueblos
Alan Muller
Green Delaware
Frances Bartelt
Wisconsin Fair Trade Campaign /Milwaukee
Noah Madlin
Rainforest Action Group for Indigenous Peoples
Tony Littman
SF Bay Area Jubilee Debt Cancellation Coalition
Margaret Nagel
Neighbors for Peace/GeneWise
Iris Young, Professor
Political Science, University of Chicago
URUGUAY
Teresa Perez
World Rainforest Movement
