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Govt Ready to Take Over Umeme Concession – Nankabirwa

Published

3 months ago

March 19, 2025

Admin

The government has reaffirmed its preparedness to take over Uganda’s electricity distribution network from Umeme Limited, with the transition set to be managed by the Uganda Electricity Distribution Company Limited (UEDCL) starting April 1, 2025.

Energy minister Ruth Nankabirwa said the government is fully ready to assume control of the concession and is committed to ensuring improved service quality, a seamless transition, and addressing power reliability challenges.

“The government is fully prepared to take over the Umeme concession through UEDCL by April 1, 2025. We are committed to improving service quality, ensuring a smooth transition, and addressing power reliability challenges,” Nankabirwa said.

However, the takeover comes amid concerns raised by the Auditor General’s office over the Shs692.688 billion ($190 million) loan that the government seeks to secure from Stanbic Bank Uganda for Umeme’s buyout.

The Auditor General has called for a delay in Parliament’s approval of the loan until a thorough audit of the figures submitted by Umeme is completed.

Joseph Hirya, director of Audit in the Office of the Auditor General, said that discrepancies in Umeme’s submitted figures required further scrutiny before final figures could be presented.

“We request a few more days, not beyond March 28, 2025, so that we can provide the actual figures,” Hirya told Parliament’s Committee on National Economy. “It is better to pay interest on the loan knowing that it is based on accurate figures.”

Hirya also clarified that the reports submitted to Parliament were not final and would undergo further quality checks before being signed off. He stressed that the delay was necessary to ensure the integrity of the financial figures guiding the buyout decision.

The Ministry of Finance, Planning, and Economic Development is finalising arrangements to secure $50 million (Shs185 billion) through internal borrowing to support UEDCL’s capital investments.

These funds, expected to be available by the end of next week, are meant to ensure UEDCL is financially equipped to sustain and enhance electricity distribution services.

Despite this, concerns have been raised about UEDCL’s readiness to assume control of the distribution network. Engineer Ziria Tibalwa, chief executive of the Electricity Regulatory Authority (ERA), told Parliament on Tuesday that the transition remains a challenge due to financial constraints and inadequate investment in preparation for the takeover.

“We aren’t even ready with the $50 million for UEDCL to start, yet the concession agreement wouldn’t allow UEDCL to step in,” Tibalwa said.

She suggested that early investments in collaboration with Umeme would have made for a smoother transition.

Power outages across the country have further exposed the difficulties surrounding the shift, with Tibalwa attributing them to clauses in Umeme’s concession that prevent government intervention until the contract officially ends.

Addressing staffing concerns, the Ministry of Energy emphasised that UEDCL’s restructuring process is designed to enhance efficiency, eliminate role duplication, and ensure cost-effectiveness in electricity distribution.

The recruitment process, the ministry noted, has been conducted transparently and on a merit basis to ensure that the most qualified personnel are retained.

Nankabirwa, however, remains focused on securing Parliament’s approval of the loan and finalising the buyout process before the March 31 deadline.

She urged lawmakers to expedite the matter, warning that any delays could lead to costly interest penalties.

“The government must move quickly to ensure a seamless transition,” she said, adding that any discrepancies between figures provided by the regulator, the Auditor General’s office, and an external consultant would be addressed promptly.

Related Topics:Uganda Electricity Distribution Company Limited (UEDCL)

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JAGO: Elect Leaders Who Will Support Vision & Culture of Jopadhola

Published

12 hours ago

June 7, 2025

Nkwanga Xavia

Tororo, Uganda | The Prime Minister (Jago) of the Padhola Cultural Institution (TACI) has hailed President Yoweri Museveni for the elevation of Tororo Municipality to city status and the creation of more districts but warned that the success of these plans depends on electing leaders who “are progressive and supportive of our cultural values.”

“This is an election season; let’s elect leaders who are supportive of the cultural institution pillars of unity, peace, and development,” said Jago Richard Josel Obbo in a press release.

Obbo warned that those undermining the TACI and the Jopadhola people’s ideals should be avoided and shunned altogether.

“Let’s equally avoid the tendency of violence as we campaign for our respective candidates,” he cautioned.

Congratulations, Tororo!

Jago Obbo also clarified that the new third district for Tororo, which is yet to be named, will be in Kisoko despite confusion over the matter recently.

“I congratulate the people of Tororo, Bukedi, and Ugandans in general upon the recent achievements we have registered, that is, the elevation of Tororo Municipality to city status and the creation of more districts of Mukuju and Mulanda,” he said.

Jago Obbo said Kisoko has always been the county headquarters of the greater Budama, West Budama, and now the West Budama North and Northeast Counties.

“Kisoko is endowed with vast land that can hold a district headquarters in addition to expanding other developmental activities, as the government may prioritize from time to time. I urge the people of Padhola to be united on this matter and shun those trying to confuse.”

He said that all the consultative meetings with different stakeholders in Tororo, who included the Kwar Adhola, Padhola Elders, Chairpersons LC 3, district leaders, councilors, and members of parliament, agreed and signed a joint memorandum that Kisoko would be the district headquarters.

“The confusion and last-minute change in mind came when one of the leaders who had always been invited for these meetings and never attended rose from the State House and proposed that the district headquarters would be agreed upon later. As leaders, we should avoid serving parochial interests; we cannot be seen to be double-minded and serving selfish interests against the larger masses,” Jago warned.

Schools and Rain

Jago Obbo called on parents in Padhola to endeavor to take all school-going children back to school without exception.

“In case a parent or guardian has financial or requirement challenges, please visit the schools and negotiate with the administration such that the children do not miss out on the academic activities,” he said.

On livelihoods, Obbo said the rains have remained consistent this season. “Let’s continue taking advantage of the rains and plant fast-maturing crops to support our families both at subsistence and commercial levels.”

He revealed that TACI is currently mobilizing all residents of Tororo to embrace government programs, especially immunization of children against malaria.

“I urge all people to send their children right from birth to two years of age for immunization, such that they remain healthy while growing,”.