Uganda Unlikely To Renew Eskom Concession, Says Ruth Nankabirwa

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Uganda’s energy minister Ruth Nankabirwa has said the government is unlikely to renew the operating license of South African energy company, Eskom.

In 2002, Eskom and Uganda Electricity Generation Company Limited (UEGCL) signed a concession agreement for the latter to operate and maintain the Nalubaale and Kiira Power stations for an agreed period of 20 years, for a concession fee.

“I cannot say it [the concession] will be renewed,” Nankabirwa said. The Eskom concession will expire in June 2023.

She made the remarks at Namanve Thermal Power Plant also known as Jacobsen in Namanve, Mukono District—where ownership of the facility has reverted to the government after 13 years in operation as a concession.

“The way the Concessions Build Operate and Transfer (BOT) works is that the investors recover all his money. After recovering the money then they transfer the assets back to the government at no cost,” Harrison Mutikanga, Chief Executive at UEGCL.

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Following complaints of high power tariffs—when she was appointed Energy minister, Nankabirwa resolved to get rid of “middlemen” in the generation and distribution subsectors.

The government says the takeover of the Thermal Plant will ease costs y about 18% as the power evacuated will be managed by UEGCL.

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