https://en.sputniknews.africa/20240104/uganda-to-pay-225-mln-to-national-power-utility-as-concession-nears-completion-top-energy-official-1064465429.html
Uganda to Pay $225 Mln to National Power Utility as Concession Nears Completion: Top Energy Official
Uganda to Pay $225 Mln to National Power Utility as Concession Nears Completion: Top Energy Official
Sputnik Africa
In late 2022, the Ugandan government informed Umeme, the country's main electricity distribution company, owned by a subsidiary of the UK-based Commonwealth... 04.01.2024, Sputnik Africa
2024-01-04T12:13+0100
2024-01-04T12:13+0100
2024-01-04T12:13+0100
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As Uganda nears the end of Umeme's 20-year power concession, the government estimates it will pay the utility about $225 million to recoup its investment in the national grid, Irene Batebe, the permanent secretary in the Ministry of Energy and Mineral Development, told local media.She further mentioned that the government's auditor general would conduct a final review of Umeme's investments in the national power grid to determine the precise amount to be disbursed to the company.To operate the national grid, Batebe revealed that the government plans to partner the state-owned Uganda Electricity Distribution Company Limited with a private sector operator.In March 2022, Ugandan President Yoweri Museveni instructed the Ministry of Energy to initiate a process to replace Umeme, citing getting "tired of Umeme's inadequacies."A month later, lawmakers passed the Electricity Amendment Bill 2022, which, among other things, allows generation and transmission licensees to supply electricity in bulk directly to classes of consumers, ending Umeme's monopoly as the sole supplier of electricity.The bill, which was signed into law by the president in June 2022, similarly aims to "implement the presidential directive on selling power to industries at a tariff that eliminates the expensive distribution costs of Umeme," the report by the Natural Resources Committee reads.
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uganda, east africa, energy, yoweri museveni, power, electricity, economy
Uganda to Pay $225 Mln to National Power Utility as Concession Nears Completion: Top Energy Official
In late 2022, the Ugandan government informed Umeme, the country's main electricity distribution company, owned by a subsidiary of the UK-based Commonwealth Development Corporation, that it would not renew its concession, which expires in March 2025.
As Uganda nears the end of Umeme's 20-year power concession, the government estimates it will pay the utility about $225 million to recoup its investment in the national grid, Irene Batebe, the permanent secretary in the Ministry of Energy and Mineral Development, told local media.
"Today we do have an idea of how much the buy-out amount is [...] approximately we are in the tune of about $225 million," she said.
She further mentioned that the government's auditor general would conduct a final review of Umeme's investments in the national power grid to determine the precise amount to be disbursed to the company.
To operate the national grid, Batebe revealed that
the government plans to partner the state-owned Uganda Electricity Distribution Company Limited with a private sector operator.
In March 2022, Ugandan President Yoweri Museveni instructed the Ministry of Energy to initiate a process to replace Umeme, citing getting "tired of Umeme's inadequacies."
A month later, lawmakers passed the Electricity Amendment Bill 2022, which, among other things, allows generation and transmission licensees to supply electricity in bulk directly to classes of consumers, ending Umeme's monopoly as the sole supplier of electricity.
The bill, which was signed into law by the president in June 2022,
similarly aims to "implement the presidential directive on selling power to industries at a tariff that eliminates the expensive distribution costs of Umeme," the report by the Natural Resources Committee reads.
