18 July 2013
Construction of the Chinese funded Karuma hydropower dam in Uganda has hit delays because one Chinese company is challenging the contract award to another Chinese company, while local residents are demanding higher compensation for their properties.
In June Chinese firm Sinohydro won the contract to build the 600MW dam and promised to start work within two weeks.
Delays hit mega project to dam Uganda’s Karuma River (Credit: Sarahemcc/Wikimedia)
But rival company, China International Water and Electric Corporation, has since gone to court to challenge the tender decision, reports AllAfrica.com.
Meanwhile, over 400 families being displaced for the dam have asked for construction to stop until their compensation rate issues are resolved.
The dam is expected to boost economic growth once finished in seven years.