Members of parliament have demanded government not to consider releasing close to 650 billion shillings to China’s firm Sinohydro Corporation to start construction of karuma power project.
Mps made the demand after reports that Sinohydro which had pledged to finance the construction of this dam 85% failed to secure funding from chinese bank and requested government to give 650 billion shillings which it had promised as counter funding for the project.
Mps Sam Otada and Paul Mwiru told journalists at parliament that Uganda may lose its funds in this project if the money is released before Sinohydro secure funding for the project.
Mps argue that even the price of to construct karuma power project could have been inflated three time if you compare a dam of the same megawatt built in Ethiopia at low price.
Mp Otada said that 1.4 billion dollars are huge sum of money to construct karuma power project of which is 600 megawatts yet a power dam almost with the same megawatts in Ethiopia cost less than this amount of money.
They promise to raise the matter in parliament when it resumes so as government tells Ugandans the status of constructing karuma power project.