Parliament has approved an additional UGX 89 billion requested by the Ministry of Energy to oversee corrective works at Karuma and Isimba hydropower dams, sparking public criticism over escalating project costs.
Of the approved funds, UGX 51 billion has been allocated for Karuma Dam, while UGX 38.367 billion is designated for Isimba Dam. The decision, which was based on recommendations from the Budget Committee, aims to facilitate defect rectification and quality assurance for the already costly projects.
The approval was announced during a plenary session on Wednesday, following a report presented by Achia Remigio, Vice Chairperson of the Budget Committee, on the 2025/26 Budget Framework Paper.
The Committee on Environment and Natural Resources defended the funding, emphasizing that Karuma Dam is still under its Defects Liability Period. Lawmakers argued that continuous monitoring by the owner’s engineer is necessary to ensure all faults are addressed before the contractor formally hands over the project.
Initially projected for completion in 2019, Karuma Dam has faced numerous delays, ultimately pushing its commissioning to 2024. The project, originally budgeted at $1.7 billion (UGX 6.218 trillion), has now exceeded UGX 8.18 trillion a 15% increase.
Additionally, the funds will support the Community Development Action Plan (CDAP), which seeks to improve infrastructure and social services in communities surrounding the dams. The plan includes upgrading schools, health centers, and water supply systems, as well as extending electricity access.
The Ministry of Energy also requested UGX 38.367 billion to address defects at Isimba Dam, particularly structural weaknesses in the spillway gates, which pose significant safety risks. MPs warned that failure to allocate adequate funding could result in poor-quality repairs, potential regulatory penalties, or even operational shutdowns.
Further, the ministry highlighted the urgent need to construct staff housing and other essential infrastructure that were omitted in the dam’s original design.
Isimba Dam, which is already operational, has faced multiple challenges, including engineering flaws that require immediate rectification to ensure its long-term stability.
Karuma Dam was officially commissioned in September 2024, nearly 12 years after construction began. Its delays were attributed to disputes between the Chinese contractor, Sino Hydro Power Company, and government agencies, including the Ministry of Energy and the Uganda Electricity Generation Company Ltd.
While the government blamed the contractor for slow progress and substandard work, Sino Hydro pointed to delays in receiving critical technical designs from the government. Reports highlighting structural defects at Karuma first emerged in 2021, yet many issues remain unresolved, necessitating further financial injections.
Despite Uganda’s increased electricity generation capacity rising from 1,251MW in 2019 to 2,048.1MW with the commissioning of Karuma (600MW) and Isimba (183MW)—MPs expressed concern over the country’s inadequate transmission infrastructure.
The Budget Committee cautioned that while investments in power generation continue to rise, the lack of sufficient transmission networks results in high energy losses. Lawmakers urged the government to prioritize transmission upgrades to fully harness the benefits of its electricity expansion initiatives.
The approval of the UGX 89 billion request has sparked widespread public debate, with critics arguing that taxpayers should not bear the cost of correcting engineering flaws that should have been prevented through better oversight during construction.
