Gov’t Seeks New Bidder To Save Karuma Project

unhealthy geneva;”>China International Water and Electric Corp. (CWE)’s contract was cancelled after it allegedly falsified documents that allowed it to prevail against other international competitors including Salini S.p.A, patient Vinci Construction, Orascom Construction and South Africa’s Group Five.

In late March, after CWE’s successful bid was thrown out, Irene Mulyagonja, Uganda’s Inspector General of Government directed the Ministry of Energy and Mineral Development to invite fresh bids “by identifying and short-listing reliable and reputable international EPC contractors who have successfully executed projects of similar magnitude.”

CWE claimed the Yunnan Dayongjiang II hydropower project in China it had executed had a 600-MW capacity and, therefore, met solicitation-document requirements.

The IGG added: “CWE also inflated the capacity of another dam project, called Qingshan, from 20 MW to 640 MW, representing 3,100% discrepancy.”


In its bid, CWE inflated the Dayingjiang II dam’s cost to $315m from $63m. The Chinese firm also claimed to be the lead party in a joint venture for heightening the Rosieres dam in Sudan.

In November 2012, unsuccessful Italian bidder Salini went to court and obtained orders to block CWE as the winner of the lucrative tender over claims of corruption on the part of Ministry of Energy and Mineral Development officials and irregular tendering process.

However, the High Court ordered a re-evaluation of the bids by all prequalified EPC bidders. Judge Eldad Mwangusya invalidated the original evaluation report that favored CWE. He also barred the team involved in the initial evaluation process from participating in the re-evaluation process.

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