The Minister of Energy and Mineral Development, Ruth Nankabirwa has assured Ugandans about government’s commitment to steady supply of electricity under Uganda Electricity Distribution Company Limited (UEDCL) after Umeme’s 20-year concession expires on March 30, 2025.
“The Ministry of Energy and Mineral Development (MEMD) wishes to reaffirm the Government’s full readiness to take over the electricity distribution concession from Umeme Ltd through its agency the Uganda Electricity Distribution Company Limited (UEDCL) come April 1st, 2025,” Nankabirwa stated.
Nankabirwa said the government has proposed a financial plan to support UEDCL’s initial investments and operational readiness. This includes a request to borrow $50 million to ensure maintenance and improve the electricity distribution network after Umeme exit.
“The Ministry of Finance, Planning, and Economic Development is in advanced stages of securing US$50 million through internal borrowing to support UEDCL capital investments. By the end of next week, these funds will be available to ensure that UEDCL is financially equipped to improve the quality of service,” Nankabirwa stated in a statement posted on the Ministry’s official social media platforms.
“Additionally, approval of the Buy-out amount by Parliament is in advanced stages to support the timely payment of UMEME. The Buy-out amount is a claim by UMEME for capital investments made and not recovered by the end of the concession. This further confirms the Government’s unwavering commitment to honouring its contractual obligations while ensuring a smooth transition in the electricity distribution sector.
Regarding staffing concerns, Nankabirwa said it emphasizes that the restructuring process by UEDCL aims to enhance efficiency, avoid duplication of roles, and ensure cost-effectiveness in electricity distribution.
“The recruitment process has been fair, transparent, and merit-based, ensuring that the best-qualified personnel are retained while prioritizing operational efficiency,” she emphasized.
“The Ministry takes note of the current power reliability challenges and has required UMEME to continue fulfilling its contractual obligations till the end of March 2025 while preparing UEDCL to ensure immediate corrective measures after 1st April 2025.”
