Energy Minister Nankabirwa applauds UEGCL for taking up the Internal Performance Contract Model

By Sierra Ruth Arinaitwe

The Minister of Energy and Mineral Development Hon. Ruth Nankabirwa has applauded UEGCL, a government owned company for adopting the Internal Performance Contract Model as a means of improving their operational efficiency.

Hon.Nankabirwa officiating the ceremony during which she witnessed the signing of the Isimba HPP Internal Performance Contract (IPC) between UEGCL and Isimba Management Team. These contracts give the staff the delegated authority to maintain and operate Isimba Hydropower station with limited intervention from the UEGCL Head office.

According to Nankabirwa, the Internal Performance Contract model comes at a time when UEGCL is beginning to take over the operation and maintenance of various power plants in the country which is significant in pivoting priorities from construction management to efficient business centered management.

“This gives UEGCL the opportunity to have a direct impact on the common goal of lowering the electricity tariff which comes along with a demanding challenge to maintain and even improve operational efficiency and to foster technical and strategic skilling of the employees,” Nankabirwa said.

UEGCL CEO Dr. Harrison Mutikanga and Isimba HPP General Manager Micheal Esiimu with the newly signed contract.

Dr. Harrison Mutikanga, the UEGCL CEO noted that signing of the internal performance contracts will enhance operational independence which in turn promotes efficiency and effectiveness in service delivery. It will also impact on lowering of tariffs through efficiency gains and ultimately cost-effective service delivery.

“We shall dedicate 300M for the staff to spend on the maintenance and operations of the plant independently without consultation from the UEGCL head office which we believe will build our employee’s capacity to manage the plants,” he said.

The contracts will empower and build the employees’ capacity to be able to manage the plants coming on board. Currently, UEGCL took over management of Isimba and Namave power stations and according to the Energy Minister; Karuma, Muzizi and Nyagak will be soon joining the company’s operation portfolio.

Eng. Proscovia Njuki, the chairperson of Board of Directors UEGCL also noted that launching the internal performance contract means that they are committing themselves to the highest efficiency. “With this model, we shall see improved cost management and enhanced employee efficiency as we prepare to take up operations of other plants,” she noted.

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