The Ugandan government has announced plans to regain the role of primary operator of the country’s power infrastructure.
The East African reported that technocrats have been looking closely at the concession of South African utility Eskom, which operates the Kiira and Nalubale generation dams. Eskom’s contract is due to expire in five years.
According to media, Uganda Electricity Generation Company Ltd (UEGCL) is already preparing to carry out repairs at Nalubale dam. The dam was built in 1954; experts have highlighted that it has passed its lifespan.
Eskom, as per concession agreements, should fix any anomalies in the dam; however, UEGCL’s intended active involvement raises questions about whether the government is making a u-turn on its privatisation policy.
“Those are our assets and Eskom’s contract is ending in five years so there is no way it can invest in the dam,” said UEGCL chief executive Harrison Mutikanga.
“We are going to carry out a cost benefit analysis of the Nalubaale dam. It will help us determine whether to abandon it or not,” Mutikanga added.
Regaining power infrastructure
The East African claims to have seen a document outlining the government’s move to regain divested companies. Top on the list is the electricity sector. Read more…
According to the document, the government is considering amendments to several laws including the Electricity Act 1999 and the Public Enterprises Reform and Divesture Act 1993, to clarify roles of different players, sourcing for funding, making the electricity sector government business and making it mandatory for the private sector to provide internship to students under its new power sector investment plan.
“The government is amending the Public Enterprises Reform and Divesture Act to return the management and oversight roles of all companies to ministries,” reads a report of the Presidential Investors’ Roundtable published in December 2017.
Featured image: Stock