Eskom’s Future In Uganda In Doubt

The Uganda government is considering the future of South Africa’s Eskom in the country, with MPs calling for the termination of its generation contract.  

The 20-year contract was awarded in 2003. The agreement included a commitment by Eskom to invest $100 million into Kiira and Nalubaale power stations during the contract period. Eskom’s managing director in Uganda Thozama Gangi recently confirmed that to date the company had only invested $25 million.

Government is also reported to be reviewing the concession model for the sector, with the President said to be in favour of returning power generation to the Uganda Electricity Generation Company.

Chief executive of the Uganda Electricity Generation Company Dr Harrison Mutikanga claims that under Eskom there has been no major refurbishment of the plants, which he claims are required every seven to 10 years. Meanwhile the Parliamentary Natural Resources Committee has found that some of the generation units have been down for more than five years during a fact-finding mission.