Nyagak dam works: Contractor blames delay on govt funding

Dott Services Ltd, an engineering firm contracted to build the 6.6MW Nyagak III Hydropower dam in Zombo District, has cried foul over the delayed release of government funds to complete the project.

Whereas the project, which started in May 2019, was set to be completed in September, Mr Maheswara Reddy,  the company’s managing director,  last week said the slow and intermittent disbursement of the funds is frustrating their efforts to meet the deadline.

“We have been pushed back because of failure by the government to fulfil its promises (on how project funds are released for the works). In writings, it is indicated that Shs32 billion is available for the works but only Shs4b has been disbursed to us,” Mr Reddy said.

“We request the (Energy) ministry to take the matter seriously because we need the money [to do the work in time] all is set to complete this plant early in June if the government can give us the funds,” he added.

The Nyagak III Small Hydropower Plant (SHPP) on the Nyagak River is  approximately 7km from Paidha Town Council in Alindi Village, Amei Parish, Paidha Sub-county.

At a cost of Shs33b, the dam will have an annual maximum generation of 36.27 Gigawatt Hours (GWh), with the capacity to power industrialisation and electrification of homesteads in the West Nile Region.

Dr Ruth Nankabirwa, the Energy minister, said the government was aware of the funding challenges, but added that all is being done to address the situation.

“As government, we are looking at supplying reliable power to the people of the West Nile region and I am going to push the challenges of funding to the Cabinet so that a surplus budget can be secured to fund this project because we need long-lasting electricity for this region,”  she said.

Ms Nankabirwa said the dam will be ready by September with reliable funding from the Finance ministry.

With only funding from the private partner, the contractor has been able to complete preliminary excavation works for the pipe conduit whereas excavation for access roads to the powerhouse is in progress.

Construction works at the dam reduced and eventually stalled in January 2020 according to Uganda Electricity Generation Company Limited (UEGCL).

The UEGCL claimed that the contractor had halted works due to disagreements and would resume when the issues are resolved.

Dot Services had reportedly suspended operations following a heated disagreement between Kaal Umua chiefdom in Pahida and UEGCL over the relocation of intangible cultural heritages (spiritual spheres) and land compensation along the access roads.

The suspension affected works at the dam section and access roads. 

However,  in May 2020, UEGCL yielded to conditions by Kal Umua chiefdom to relocate the chiefdom’s cultural sites and spirits, paving way for works to resume. The chiefdom had also conditioned UEGCL to build a school, hospital, borehole, cultural centre, which UEGCL committed to doing as part of the community development action plan for the project affected areas in Zombo and Paidha.

About the dam

The excavation works for the dam are currently complete and the contractor is now progressing with foundation treatment (grouting) of the dam.  Additionally, the preliminary excavation works for the Pipe Conduit and the Access Road to the Power House is complete. In the subsequent quarters, the excavation for the surge tank and concrete works for the dam shall commence. The Project Company (GENMAX Nyagak Limited) has finalized procurement of the electromechanical supplies while the preliminary designs for the transmission lines have been completed by the project company.  UEGCL as a public partner mandated with the land acquisition of the project has commenced the process of developing and implementing the Resettlement Action Plan for the transmission line.

Upon completion, the power plant will increase the total installed capacity of electricity in the West Nile region by 6.6MW.

Compiled by Tobbias Jolly Owiny, Marko Taibot & Rashul Adidi