Bujagali Hydro Power Project in Uganda

In connection with the development of the large hydropower project in Bujagali in Uganda, allegations of improper payments related to the project have been put forward. As one of the partners in the construction consortium, Veidekke wants to clarify the situation with the following statement:
- In January 1999, a former manager in a UK registered subsidiary of Veidekke made a one-time payment of USD 10.000 to a Ugandan Civil Servant. This was before the EPC Consortium for Bujagali was founded, and the payment is therefore in no way connected to this project.


The payment has never been authorized by Veidekke or any consortium, nor is it in accordance with Veidekke's policy.


The said manager has not been in Veidekke's employ since 2000, the same year that company was closed down.


Veidekke's management first learnt about the payments two months ago, when all previous accounts were closely investigated in order to assure the World Bank and the builder, AES that no form of corruption could be related to any of the participants in the project. Veidekke reported the incident immediately after it was brought to their attention. The case is still under internal investigation, so no final conclusion has yet been drawn. 


Veidekke will do its outmost to secure full transparency in this case, and will cooperate with all parties involved in further investigations. At the same time, the EPC Consortium is working on finalising a compliance program that will shortly be presented to AES and the World Bank. 


Veidekke's management takes a very serious view of this matter. However, it is important to emphasize that the payment was in no way connected to the Bujagali Hydro Power Project. Therefore, this should not represent a problem for further positive development of this important project, to all parties involved.

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