Uganda is expected to pay power distributor Umeme Limited approximately $225 million to cover the utility’s investments in the national grid after its 20-year concession ends in March 2025. The government, which rejected Umeme’s request for a concession extension, is obligated by the concession terms to compensate the company for all unrecovered capital investments.
Irene Batebe, the Permanent Secretary for the Ministry of Energy and Mineral Development, disclosed the estimated buy-out amount and mentioned that the government’s auditor general will conduct a final review to determine the precise payout.
Additionally, the government plans to engage a private company for a joint venture with the state-owned Uganda Electricity Distribution Company Limited to operate the grid after Umeme’s concession concludes. The procurement process will be competitive, with UEDCL retaining a majority shareholding in the partnership. Uganda’s power generation capacity is approximately 1,400 megawatts.
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