The lead contractor in the Bujagali dam project, Norwegian company Veidekke, has announced it is pulling out and relocating elsewhere.

‘We have decided to demobilise the site in Uganda for the time being and transfer these resources to other projects,’ said Veidekke president’s statement carried in its financial report for the second quarter, dated 29 August 2002.

It was not immediately clear what the impact of Veidekke’s suspension means for the AES Nile Power’s Bujagali dam. Energy Permanent Secretary Kabagambe-Kaliisa said on 4 September 2002 that he was not yet aware of the development and therefore could not comment.

Veidekke is one of the partners in the Karuma power project that were a year ago hired to construct the Bujagali hydro power facility.