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Uganda Electricity Generation Company Limited (UEGCL) has released its audited financial report for the last 18 months ended June 2017, which reveal a revenue loss.

UEGCL Board of Directors Chairperson, Eng Proscovia Margaret Njiki, said the company did not perform as it was expected due to economic challenges that affected the country’s economy, reports the East African Business Week.

“Let me inform UEGCL shareholders that the total assets as at 30th June 2017 have grown to UGX3.3 trillion ($826 million) from UGX 1trillion ($275 million) in 2015 as a result of ongoing projects. As the supervisors of the agency, we shall continue to ensure that it is on good track,” said Njuki.

“We are very optimistic that the company will continue to grow despite the challenges in the environment we are operating in,” she said.

Media highlighted that the company’s revenue dropped to UGX17.5 billion ($5 million) from UGX54 billion ($15 million) in 2015, this was due to the written off of long outstanding debts amounting to UGX30.9 billion ($9 million) from Uganda Electricity Transition Company Limited and the writing off government liability of about UGX42 billion ($12 million).

Suggestions for UEGCL to work on

The office of the Auditor General raised issues that should be resolved if UEGCL is to perform better as it’s expected from the general public.

Some of the issues raised included the concession management for Nalubaale and Kiira Hydropower stations, which the auditor General, John Muwanga, said risks the plants being in worse shape by the end of the concession due to a wanting operation and maintenance regime done by Eskom. Read more on a report indicating Eskom Uganda Limited performing poorly…

According to the East African Business Week, the Auditor General also cast doubt on the competence of the supervising engineer for Karuma hydropower project, Energy Infratech PYT Limited due to several quality assurance issues identified onsite during the audit period.

 

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