Fresh row at Karuma hydropower project over unpaid insurance premiums
Saturday April 25 2015
A downstream channel at the 600 megawatts Karuma dam project. The power project is once again embroiled in controversy, this time over an insurance contract. PHOTO | MORGAN MBABAZI
Sinohydro has failed to pay premiums to a consortium of 23 insurance and re-insurance companies, and is instead questioning the 2013 contract.
The insurers in the consortium include UAP Uganda, Kenya and South Sudan; Swiss Re, American International Group, Jubilee and Goldstar insurance, Lion Assurance, Britam, Zep Re, East Africa Re, Africa Re and Uganda Re.
Sinohydro proposes to source CAR policy from China-Re or other insurers of global repute. The proposal goes against national policy that requires all national projects to be insured with Uganda–Re as a way of reducing capital flight and helping deepen the domestic financial system.