ISIMBA — The Project Manager of China International Water & Electric Company, Xia Nenghai the contractor hired to construct Isimba dam has revealed that the company has run out of cash to complete the construction of the bridge joining Kayunga-Kamuli district.
Nenghai made the stunning revelation today while appearing before Parliament’s Physical Infrastructure Committee that is investigating information that Shs24Bn meant for the construction of the bridge connecting Kayunga to Kamuli district on top of Isimba dam had disappeared without any trace.
However, Nenghai distanced himself from the whereabouts of the missing money saying the payments have been handled electronically between Uganda and Exim Bank China that is funding the project and there hasn’t been physical cash in the transactions.
He also called on the Committee to review the contract signed for the dam after accusing Uganda Electricity Generation Company Limited for failing to pay them, a disagreement that has left the company cash strap. Nenghai blamed the delayed pay failure to secure guarantee required by UEGCL and slugs on civil works.
He explained, “As international contractors, we want to proceed with the issue in a simple way. All the work and payment and procedures have been agreed and specified in the contract document. We don’t need to waste time to talk. There is no need to argue, talk. Unfortunately we have argument on how to release total outstanding payment around USD42Million. There will be big financial pressure on the contractor.”
The 183MW Isimba Hydro Power Project is located 4km downstream of Simba Falls on the River Nile, in Kayunga district.
The Isimba dam was constructed at USD567.7Million with Government of Uganda forking out 15% with a loan from Exim Bank meeting 85% at 2 percent annual interest repayable over 20 years, with a five-year grace period.
