Why Karuma, Isimba dams keep costing taxpayers more money
The approval was made during Wednesday’s plenary session following the presentation of a report by Achia Remigio, Vice Chairperson of the Budget Committee, on the 2025/26 Budget Framework Paper.

Parliament has approved an additional UGX 89 billion for the supervision of correctional works at Karuma and Isimba hydropower dams, further increasing the cost of the two projects. Of this, UGX 51 billion will go to Karuma Dam, while UGX 38.367 billion is earmarked for Isimba Dam.
The extra funding comes as the government struggles to rectify defects and shoddy work, adding to the already massive costs—Karuma has now cost taxpayers UGX 8.18 trillion, while Isimba stands at UGX 2.074 trillion.
The approval was made during Wednesday’s plenary session following the presentation of a report by Achia Remigio, Vice Chairperson of the Budget Committee, on the 2025/26 Budget Framework Paper.
“The Committee recommends that the government provides UGX 51 billion for Community Development Action Plan (CDAP) activities and the supervision of Karuma Hydro Power Plant,” said Remigio.
MPs defended the additional funding, citing the need for rigorous oversight as the project enters its Defects Liability Period—a phase during which the contractor must fix faults before final handover. Lawmakers stressed that without proper supervision, unresolved defects could lead to structural failures and operational inefficiencies.
Karuma Dam was initially slated for completion in 2019, but delays spanning five years pushed its commissioning to 2024. The project’s original budget of $1.7 billion (UGX 6.218 trillion) has since ballooned by 15% due to cost overruns and repeated fixes.
The extra funds will also support the Community Development Action Plan (CDAP), aimed at improving infrastructure, social services, and natural resource management in surrounding communities. Planned activities include upgrading schools and health centers, installing power supply systems, and improving water access.
For Isimba Dam, the Ministry of Energy requested UGX 38.367 billion to support supervision, CDAP activities, and the construction of staff housing. While Isimba is already operational, major structural issues—particularly defects in the spillway gates—have raised safety concerns.
“It is critical to ensure proper supervision and quality assurance during spillway repair works to safeguard the dam’s structural and operational reliability,” warned Remigio. “Failure to address these defects could lead to regulatory penalties, shutdowns, or worse.”
MPs also pushed for capital investment in staff quarters and other essential infrastructure that were left out of the dam’s original design.
Karuma Dam was finally commissioned in September 2024 after nearly 12 years of delays, marred by blame-shifting between the Chinese contractor, Sino Hydro Power Company, the Ministry of Energy, and the Uganda Electricity Generation Company Ltd.
The government accused Sino Hydro of poor workmanship, while the contractor cited delays in receiving technical designs from the government. Reports of defects at Karuma surfaced as early as 2021, and the latest funding request suggests that many of these issues remain unresolved.
According to the Electricity Regulatory Authority, the commissioning of Karuma (600MW) and Isimba (183MW) has pushed Uganda’s installed electricity capacity to 2,048.1MW—63.7% higher than the 1,251MW recorded in 2019.
However, the Budget Committee warned that Uganda’s heavy investment in power generation has not been matched with adequate spending on transmission infrastructure, leading to significant energy losses. MPs urged the government to prioritize power transmission and distribution to fully utilize the country’s electricity expansion efforts.