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Government has said that Gulu and Northern Uganda power outage is expected to be resolved in December this year when Aswa dam starts working.

Charles Okello, an eye witness and causal worker at the dam, says the scuffle started during the search of some casual workers suspected of stealing scrap.

Some accuse their union leaders of embezzling their National Social Security Funds contributions, assaulting members and persistent lack of compensation of members injured on duty among others.

The Chief Executive Officer Uganda Electricity Generation Company Limited UEGCL, Eng Harrison Mutikanga, says the operation of Karuma and Isimba hydro dam projects will not be rented to Eskom Uganda Limited EUL.

Muwanga says there is no material uncertainty which may cast doubt on the companys ability to continue as a going concern. The Auditor General, however, points out a number of critical occurrences in the power generation sub-sector which require urgent attention.

Under the agreements, signed this morning, KfW will provide a concessional loan of EUR 40 million 153 billion Shillings and a grant of EUR 5 million 19 billion Shillings while AFD contributes a concessional loan of EUR 45 million 172 billion Shillings.

Julius Hakiza, the Albertine Region Police Spokesperson says that the marine unit of the police is continuing the search, upstream and downstream, but is yet to come across any possible clue.

Police marine unit has for the last three days been searching for the body of a Chinese national who drowned at the Karuma dam construction site in Kiryandongo district on Friday morning.

Lawrence Kizza, the director of economic affairs in the ministry of finance, says the money is being used to co-fund the construction of the 600-megawatt Karuma Dam. The dam is being constructed by Chinese firm Sino-hydro Corporation at a cost of 1.7 billion dollars with the government contributing 15 percent of the funding and the remaining 85 percent coming from Chinese development bank Exim.

State minister for energy Simon D’Ujanga has said that Karuma power will significantly lower the final power tariff insisting that the power from the dam will be cheap.

According to the source, it was feared that CWE had a strong case, which could attract heavy compensation. However, D’Ujanga dismisses the claims as baseless rumors saying that its true CWE will construct Isimba but not because of the alleged reasons.

He said that there is 1.1 billion shillings on the energy fund, adding it will serve its purpose which is the construction of the dam, whether it starts tomorrow or next year.

Karuma hydro project was scheduled to come on board before the country slips back into darkness while the recently completed 250-megawatt Bujagali Dam can still meet the current electricity demand, but construction is yet to commence.

Members on the Natural Resources Committee of Parliament have tasked the ministry of energy to explain the confusion surrounding the Karuma hydro power project.

Karuma Hydro Power project to swallow $US 2.2b