This run-of-river hydropower plant is located in the Bundibugyo District in Western Uganda. The EPC Contractor is common to both the Sindila and Ndugutu SHP’s, and the design and construction issues encountered at the Sindila SHP were similarly experienced at Ndugutu SHP during 2018. The construction methodology for delivering and installing the penstock pipeline led to multiple slope failures, slow construction progress, and substantial environmental and social damage during the latter part of 2017 and early 2018. Consequently, a financial penalty was applied in the form of a subsidy reduction and the Project was threatened with further financial penalties if construction practices did not improve. The threat of further subsidy reductions persists into Q1 2019 due to the continued substantial risks of environmental and social damage. Following a request to partially stop construction, the design and construction methodology was substantially modified and included a shift towards adopting more manual construction techniques as well as cableway systems.
As for Sindila SHP, delays experienced due to the earlier construction methodology, combined with the duration required to rethink and adopt an alternative construction approach, substantially impacted construction progress. By the end of 2018, a considerable amount of construction works was still remaining, particularly along the headrace waterway and at the weir, and commercial operation was planned to commence in Q2 2019.
The Ndugutu and Sindila hydropower projects will initially connect to an existing power evacuation line that will not be sufficient to evacuate the full capacity of both projects. The construction of the new 100 km of 33 kV power evacuation line, which is the permanent evacuation solution for both projects, is currently planned for completion in Q3 2019 and will therefore need to be expedited to avoid deemed energy claims.