High Court at Kampala
National Association of Professional Environmentalists
AES Nile Power Limited
The National Association of Professional Environmentalists (NAPE), an action organization committed to sustainable solutions, sued to prevent the respondent – an American firm with a substantial presence in Uganda – from concluding a power purchase agreement with the Government of Uganda until NEMA had approved an Environmental Impact Assessment (EIA). NAPE, the applicant, alleged that signing the proposed power purchase agreement prior to the mandatory EIA would lead to a development project with potential to harm the environment and violate Ugandans’ environmental rights. In addition to the requested interim injunction, the applicant sought a declaration that EIA approval is a legal prerequisite for endorsement of similar development projects.
The Court denied the injunction, finding that the matter did not pose such imminent environmental damage as to warrant an injunction, because the challenged agreement did not actually give the company permission to start development prior to the EIA. The Court conceded that the signed agreement could serve as evidence of a reasonable likelihood of possible environmental harm, but held that evidence on its own was not sufficient to support the requested injunction. Additionally, the Court noted the freedom of contract dangers inherent in permitting an injunction to prevent the signing of an agreement.