Construction of the Karuma dam has deprived hundreds of people in Uganda’s Nile delta of their land, homes, and livelihoods. Many people have been waiting a decade for relocation, with some left to live under high voltage transmission lines for lack of safer alternatives.
From a height above the riverbank, you can watch the massive concrete dam harness the powerful waters of the Victoria Nile River. When the hydropower plant is completed by Chinese company Sinohydro Corporation Limited, it is expected to produce 600 megawatts for the Ugandan electricity market.
The Karuma dam project has been delayed several times, forcing the government to start paying off the loan to the Export-Import Bank of China.
The hillside upstream of the river is one of the few places where you can see the whole power station. The transmission substation and part of the riverbank are fenced off and guarded by the military. Two tall surveillance towers have been built to keep intruders outside the area.
After the construction work started ten years ago, the people in Awoo village lost most of the land they had cultivated for generations, and access to the river where they fished. Out of desperation, some of the villagers started to produce gravel from a large mound of rocks excavated from the river basin and dumped next to their homes during the dam’s construction. Men and women make the hazardous 30-meter climb up the deposit to collect the stones, which are then cracked manually with hammers and sold to construction companies.
Out of desperation, some villagers started to produce gravel from a large mound of rocks excavated from the river basin.
A report by Both ENDS describes how land evictions from Awoo village were forceful, with bulldozers bringing down houses, fruit trees and other properties as the community watched. A family was reportedly forced out of their house, which was then set on fire. After that, the community had no choice but to accept the limited compensation offered to them and determined by the Ugandan state.
Today, those who do not make a living from cracking stones have few options other than doing hard labour for the power company. Normally they earn UGX 8000 a day (about US$2) for cleaning or heavy concrete work, according to the interviews by Just Finance International. This salary is only enough to buy food, they claim.
When the project first started a decade ago, they were promised relocation to somewhere better and fair compensation for their land. This has not happened. We observed several families living under the high voltage transmission line that connects the power station to the grid which is both hazardous for the health and risky. Still, people claim they have nowhere else to go, a failure that has been flagged as a weakness by Uganda’s auditor general.
Chinese state-owned company Sinohydro started construction of Karuma in 2013, as well as three high-voltage transmission lines. The infrastructure is a keystone project in the government’s plan to electrify Uganda, where only 22.1 percent of the population have access to the grid. The Karuma hydro plant is expected to power homes, industry, and public buildings such as schools and hospitals.
The project has been delayed several times, forcing the government to start paying off the $1.7-billion loan to the Export-Import Bank of China before any electricity was produced. The hydro plant is now generating power but not at its full capacity.
The communities around the dam had high expectations when construction started. The government promised well paid work, roads, a school, a health center, access to water, electricity and a fishpond.
However, community members interviewed by Just Finance, claim that little has been completed. Not even the promise of healthcare access was fulfilled. The closest hospital is in Gulu, 65 km from the village. Another health center was constructed by Sinohydro in the town Masindi, 112 kilometers away from the villages. This investment is claimed to benefit the communities affected by the dam, but according to Just Finance sources, it serves the military and not the general public.
Furthermore, the promised water supply is still missing and the garbage collection center for Karuma township has also not been completed.
A church has been built. A primary school has been renovated. And a mosque is being renovated although the building has been rejected by the Muslim community because of its poor build quality. The communities still have no access to the roads and, ironically, no one in the communities visited by Just Finance, had access to electricity.
In Ayuda village, not far from Awoo, the situation is desperate. Despite all the promises from the government and the Chinese company, living conditions have deteriorated. Many families in the village can no longer afford school fees, and they have to walk a long distance to fetch water from springs in the jungle.
Men and women make the hazardous 30-meter climb up the deposit to collect the stones, which are then cracked manually with hammers.
“Our life has been overturned”, a woman told Just Finance.
According to the villagers, more than 100 acres of land have been taken from them, with just one acre remaining. The community say they were offered 6 million UGX (1600 USD) for the land, an amount they all thought was far too low, but nobody listened, and they had to take the case to court. The process is ongoing after 10 years.
One woman told Just Finance that she used to sell her harvest on the market and earn good money, but now she has nothing to sell. To survive, they have to work for the Chinese company. It is hard labour, and her salary of UGX 8000 per day is only enough to buy food, she said.
The Ayuda village had more than 150 graves in the project area. Construction works have destroyed many of them, according to people in the community. No one got any compensation to move the graves.
“It is an evil omen when the graves are destroyed. It will affect our community mentally for generations to come,” one woman said.
The community members find it difficult to communicate with people from the Chinese company. There are no translators, and the government does not help them. This has caused misunderstanding and mistrust.
One woman claimed she had 8 acres of land before the hydro plant was built, of which 5 were farmland. But when her land was evaluated by the government, they wrote that she only had 3 acres.
“It was a fraud, and somebody else got the money. I have no money left and I have no land anymore. Instead of creating development this has worsened our situation and destroyed our community,” the woman said.
Just Finance International has contacted Sinohydro Corporation Limited and Ugandan electricity company, Uganda Electricity Generation Company Limited (UEGCL), but to date they have not yet provided a response.
The World Bank’sBoard of Executive Directors is reviewing the Action Plan (MAP) prepared by the Bank’s management to address the findings of the Inspection Panel’s investigation into the Resilient Natural Resource Management for Tourism and Growth (REGROW) project in Tanzania. The investigation followed a complaint filed by the Oakland Institute in June 2023 on behalf of impacted communities. While the Panel’s findings and MAP will only be made public after its approval by the Board, the Oakland Institute urges the Bank to ensure that demands of impacted communities are addressed by the MAP to redress the harms caused.
“The Bank is responsible for the devastating crisis which has left over 84,000 lives hanging in the balance. For several years, using tax-payer dollars, it financed a project that blatantly violated its operating procedures and safeguards around human rights abuses and forced resettlement. It failed to act when made aware of the violations and continued pouring money into the project. Now the Bank cannot hide behind lame excuses and should fulfil the demands of communities harmed by its financing,” said Anuradha Mittal, Executive Director of the Oakland Institute.
Beacon marking expansion of Ruaha National Park to consume Luhanga village and make communities trespassers in their own lands
The US$150 million REGROW project in Tanzania began in 2017 as a credit from the International Development Association (IDA). It was cancelled on November 6, 2024 after nearly two years of advocacy by the Oakland Institute and affected villagers to hold the Bank accountable for enabling the expansion of Ruaha National Park (RUNAPA) and supporting TANAPA, the paramilitary Tanzania National Parks Authority. Its rangers, equipped and financed by the Bank, are responsible for egregious human rights abuses, including extrajudicial killings, forced disappearances, and crippling livelihood restrictions that have terrorized local communities. Forced resettlement was initiated by the Tanzanian government in complete disregard for the Bank’s safeguards that require proper consultation and adequate compensation for affected communities.
“We call on the World Bank to fully assume its responsibility and urgently take these necessary steps to answer our pleas for justice. Our lives are on hold as the threat of eviction looms over us every single day. Our livelihoods have been undermined for years, our children are out of school, our farms sit fallow and our cattle are still being forcibly seized. We cannot continue living like this. The Bank must adequately address our past and ongoing suffering.”
Statement by impacted villagers in Mbarali, January 2025
In December 2024, the Institute worked with the impacted communities to carry out a thorough assessment on the ground to evaluate the consequences of the REGROW project. This research lays bare the devastation caused by the expansion of the park – formalized during the project in October 2023 through Government Notice 754. While the Tanzanian government claims only five villages are now inside RUNAPA, the December assessment found that 28 villages across 10 wards and home to over 84,822 people are located inside the area added to the park. As Tanzanian law forbids settlement in National Parks, these farmers and pastoralists will be forcibly evicted unless the expansion is revoked.
Livelihood restrictions enforced by TANAPA rangers have decimated these communities. Thousands of farmers have been barred from farming by the government. For 551 members of two farmer associations stopped from cultivating rice over the past three years, the economic loss is over US$66 million.1
Herders have also been massively impacted by the restrictions of access to pasture land, cattle seizures, and violence committed by TANAPA rangers. Since 2021, 52 pastoralist families have had cattle seized, losing 7,579 cattle for a value of over US$6 million.2 Since 2018, 39 families have paid the equivalent of US$212,175 in fines to recover 4,757 cattle confiscated by TANAPA within disputed park boundaries. These fees and fines have pushed families into destitution.
Over the course of the project, at least 11 individuals were killed by police or rangers, five forcibly disappeared, and dozens suffered physical and psychological harm, including beatings and sexual violence. Victims and their relatives have lost hope of seeing TANAPA rangers brought to justice while continued repression has stopped many from speaking out.
“The World Bank claimed the project was intended to benefit local communities; it has instead destroyed their lives. It must take responsibility for enabling violence and displacement and ensure that the expansion of the park is revoked,” concluded Mittal.
Impacted communities are demanding that the MAP address the following urgent issues:
Removal of beacons placed marking the expansion of the park and to officially revert park boundaries to the 1998 borders established by GN 436a.
Provide comprehensive compensation for damages incurred by livelihood restrictions and violence inflicted by TANAPA rangers, including:
Value of fines paid by pastoralists to reclaim cattle illegally seized.
Value of cattle auctioned.
Compensation for the loss of agricultural production for three seasons (2023, 2024, 2025).
Compensation for the victims of violence and killings by TANAPA.
Establish a multistakeholder independent mechanism to oversee reparations.
Restore social services to villages impacted by GN 754.
Complete construction on Luhanga Secondary School and provide it with government teachers.
Reopen Mlonga Primary School that was closed in October 2022.
Ensure all villages located within GN 754 boundaries are provided with the power, water, and social services they are entitled to like other villages.
As the publishing date for the European Commission’s Omnibus Simplification Package proposal draws closer, a coalition of major business associations representing over 6000 members, including Amfori and the Fair Labor Association, has called on the EU to uphold the integrity of the EU sustainability due diligence framework.
Governments have also joined the conversation, with the Spanish government voicing its strong support for maintaining the core principles of the CSRD and CSDDD.
Their call emphasises the importance of preserving the integrity of the Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD).
These powerful business voices have been complemented by statements from the UN Working Group on Business & Human Rights, alongside 75 organisations from the Global South and 25 legal academics, all cautioning the EU against reopening the legal text of the CSDDD.
Additionally, the Global Reporting Initiative has urged the EU to maintain the double materiality principle of the Corporate Sustainability Reporting Directive, meanwhile advisory firm Human Level published a briefing exploring the business risks of reopening level 1 of the text.
Concerns stem from fears that reopening negotiations could weaken key human rights and environmental due diligence provisions, undermine corporate accountability and create legal uncertainty for businesses.
The European Commission’s Omnibus proposal is expected to be published on 26 February.
“Landmark Court Ruling Delivers Devastating Blow To Flagship Carbon Offset Project”, Friday, 31 January 2025.
A keenly-watched legal ruling in Kenya has delivered a huge blow to a flagship carbon offset project used by Meta, Netflix, British Airways and other multinational corporations, which has long been under fire from Indigenous activists. The ruling, in a case brought by 165 members of affected communities, affirms that two of the biggest conservancies set up by the controversial Northern Rangelands Trust (NRT) have been established unconstitutionally and have no basis in law.
The court has also ordered that the heavily-armed NRT rangers – who have been accused of repeated, serious human rights abuses against the area’s Indigenous people – must leave these conservancies. One of the two conservancies involved in the case, known as Biliqo Bulesa, contributes about a fifth of the carbon credits involved in the highly contentious NRT project to sell carbon offsets to Western corporations. The ruling likely applies to around half the other conservancies involved in the carbon project too, as they are in the same legal position, even though they were not part of the lawsuit. This means that the whole project, from which NRT has made many millions of dollars already (the exact amount is not known as the organisation does not publish financial accounts), is now at risk.
The case was first filed in 2021, but judgment has only recently been delivered by the Isiolo Environment and Land Court. The legal issue at the heart of this case was identified in Survival International’s “Blood carbon” report, which also disputed the very basis of NRT’s carbon project: its claim that by controlling the activities of Indigenous pastoralists’ livestock, it increases the area’s vegetation and thus the amount of carbon stored in the soil.
The ruling is also the latest in a series of setbacks to the credibility of Verra, the main body used to verify carbon credit projects. Even though some of the participating conservancies in the NRT’s project lacked a clear legal basis and therefore could not ‘own’ or ‘transfer’ carbon credits to the NRT, the project was still validated and approved by Verra, and went through two verifications in their system. Complaints by Survival International prompted a review of the project in 2023, which also failed to address the problem.
Caroline Pearce, Director of Survival International, said today: “The judgement confirms what the communities have been saying for years – that they were not properly consulted about the creation of the conservancies, which have undermined their land rights. The NRT’s Western donors, like the EU, France and USAID, must now stop funding the organization, as they’ve been funding an operation which is now ruled to have been illegal…
The lawsuit accused NRT of establishing and running conservancies on unregistered community land, “without participation or involvement of the community,” including not obtaining free prior and informed consent before delineating and annexing community lands for private wildlife conservation.
The complaint reads, in part, “(NRT), with the help of the Rangers and the local administration, continue to use intimidation and coercion as well as threats upon the community leaders where the community leaders attempt to oppose any of their plans.” The case was brought by communities from two conservancies, Biliqo Bulesa Conservancy (which is in the NRT’s carbon project area and where 20% of the project’s carbon credits were generated) and Cherab Conservancy, which isn’t.
These two conservancies, the court has ruled, were illegally established. Permanent injunctions have been issued banning NRT and others from entering the area or operating their rangers or other agents there. The government has to get on with registering the community lands under the Community Land Act, and has to cancel the licences for NRT to operate in the respective areas. The NRT’s carbon offset project is reportedly the largest soil carbon capture project in the world.