International Rivers Network and the Bujagali Dam Project (A), Spanish Version Case Solution
In the summer of 2002, the International Rivers Network (IRN), an environmental NGO located in Berkeley, California, was engaged in what appeared to be the last hours of a three year effort to stop a $582 million dam and hydropower project at Bujagali Falls in Uganda. The last segment regarding the funding was about to be put in place as the World Bank was set to approve a $250 million loan guarantee for the project. IRN stated the electricity deal between the government of Uganda and AES was the real problem although the job would have some adverse environmental and social impacts.
As it was seen by IRN, the expense of the endeavor was too high and Ugandans would bear most of the danger, which would increase the country's debt burden. However, without the electricity purchase agreement, which remained undisclosed despite requests for it to be made public, IRN had little economic data on the endeavor to reinforce its argument. However, there were powerful reasons, for the Ugandan authorities to go ahead with the deal it had with AES, the project sponsor, like economic development and poverty alleviation. AES, with its social mission and reputation for producing low cost energy to the world, seemed like the ideal patron.
This is just an excerpt. This case is about FINANCE & ACCOUNTING
PUBLICATION DATE: March 04, 2004
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