International Rivers Network and the Bujagali Dam Project (A)

Case Solution

Benjamin C. Esty, Aldo Sesia
Harvard Business School ()

In the summer time season of 2002, the International Rivers Network (IRN), an environmental NGO placed in Berkeley, California, became engaged in what regarded to be the ultimate hours of a 3 yr marketing campaign to forestall a $582 million dam and hydropower challenge at Bujagali Falls in Uganda. The very last piece of the financing puzzle became approximately to be installed vicinity because the World Bank became set to approve a $250 million mortgage assure for the challenge. Although the challenge might have a few unfavorable environmental and social impacts, IRN contended that the strength deal among the authorities of Uganda and AES became the actual problem. As IRN noticed it, the price of the challenge became too excessive and Ugandans might undergo maximum of the risk, which might upload to the country’s debt burden. However, with out the strength buy agreement, which remained undisclosed no matter requests for it to be made public, IRN had little monetary information at the challenge to reinforce its argument. Still, there have been compelling reasons, along with monetary improvement and poverty alleviation, for the Ugandan authorities to head in advance with the deal it had with AES, the challenge sponsor. AES, with its social project and popularity for handing over low-price strength to the world, regarded like the right sponsor.

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