The permanent Secretary at the Ministry of Energy and Mineral Development Eng. Irene Bateebe has said that by December 2022 the buy out price for power distributor – Umeme was at USDs 215m.
Eng. Bateebe said that Uganda Electricity distribution Company Limited (UEDCL) requires USDs 158M to enable it invest in the distribution network over the next three years as Umeme prepares to exit Uganda ‘s power sector .
Umeme’s 20 year contract with government of Uganda will come to a natural end in 2025 and government through the Ministry of Energy will take over full control of electricity distribution across the country .
Eng. Bateebe was appearing before the Committee of Environment and natural Resources together with other officials from her Ministry .
The PS further told the MPs that UEDCL which will take over the operations of Umeme needs capitalization of USDs 64 M to build capacity to ensure supply of electricity to Ugandans .
However, some MPs expressed concern that government is losing in its projected investments to extend power to as many Ugandans as possible because Umeme is no-longer committed in its obligations to maintain and expand the power distribution infrastructure because of the pending exit .
Dr. Emmanuel Otala the Chairperson of the Committee on Natural Resources asked Eng. Batebe and her technical team as the accounting officer to ensure that Umeme ‘s exit which is still three years away , should not in anyway affect power distribution in Uganda .
The MPs also demanded to be furnished with the ministry ‘s strategy about Umeme exit to guarantee power supply across the country .
