KAMPALA.
By Joseph Kiggundu
The Uganda Electricity Generation Company Limited (UEGCL) has revealed a plan to rehabilitate Nalubaale -Kiira dam (380MW).
Under its strategic plan 2025-30 , the company also plans to rehabilitate Namanve thermal Plant (50MW) and Maziba SHPP (1MW) at a total cost of Shs679.1 billion.
Uganda’s primary electricity generation company added that it intends to develop and implement a strategic asset management plan for all current and future power-generating facilities.
Data from UEGCL shows that it will sign and implement the power generation investment strategy by developing and implementing a five-year power generation investment expenditure programme for existing power plants (Shs711.5 billion) and future power generation expansion (Shs546.8 billion).
“Integration of Public Private Partnerships in the development, financing, construction and rehabilitation of power generating facilities and pursue UEGCL’s listing on the Stock Exchange to raise capital for new investments and improve liquidity,” the report shows.
Details contained in a March 26,2023 report , independent engineer’s assessment report show that repairs or overhauls are required on generator protection—which safeguards the turbines from inherent risks of over current and over voltage.
Upgrades are also required for online vibration monitoring systems for units/turbines 1, 4, 5, 6, 8 and 10 at Nalubaale, vibration monitoring system upgrade for units 11 and 12 at Kiira, and water bus main refurbishment for units 6, 7 and 8 which have been red-flagged as risks for power house flooding.
The strategic plan report adds that UEGCL will adopt pre-project planning techniques to improve project planning, particularly project cost and time overruns, hence a favourable balance sheet. The parastatal company is also desirous of developing a sustainable debt financing strategy by undertaking negotiations with the shareholders for conversion of existing debt to equity and injection of additional equity into the Company.
UEGCL also intends to implement cost reflective tariffs by undertaking negotiations with the shareholders and key stakeholders for incorporation of a reasonable Return on Investment (ROI) on both company current and future asset base as well as UEGCL’s ability to earn a Return on Equity (RoE). The report also shows that UEGCL plans to improve risk management by engaging the government to strengthen performance obligations in future contracts by proper allocation of power generation facilities and retransfer risks for Public Private Partnerships. Mr Harrison Mutikanga, chief executive officer of UEGCL, said the strategy financing framework is aligned to the national aspirations outlined under the National Development Program IV (2025-2030).
“The capital development initiatives form part of the overall integrated five-year country agenda, with potential for both Government of Uganda and private sector players to contribute to the realisation of the goals therein,” he said. Mr Mutikanga further disclosed that a total resource envelope of Shs593.646 trillion has been projected for the period 2025-2030, growing from Shs92.291 trillion in 2025 to Shs150.759 trillion in 2030.
UEGCL received Nalubale and Kiira dams in March 2023 after Eskom’s 20-year concession to run them since November 26, 2002 lapsed.
The concession provided that: “At the end of concession, the dams shall be in good working order, properly maintained in accordance with Prudent Utility Practices and all equipment manufacturers’ recommendations, and shall be free of any and all Liens (except permitted) and encumbrances and shall comply with the requirements of clause 2.6—retransfer of the dams to UEGCL.”