Uganda Electricity Generation Company Limited

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On 26 November 2002, the Government of Uganda (GoU) signed a 20 year generation concession with Eskom Uganda Limited, a wholly owned subsidiary of Eskom Enterprises (Pty) Ltd of South Africa. On April 1, 2003, Eskom took over the operations and maintenance of 120 MW Kiira and 180 MW Nalubaale power stations at Owen Falls in Jinja from Uganda Electricity Generation Company Limited (UEGCL). Under the concession all the electricity generated was sold to Uganda Electricity Transmission Company Ltd (UETCL). The concession required Eskom to commit approximately US$ 6.8 million in the first four years to refurbish the two plants and to extend the switchyards for the last two Kiira units. Eskom had to pay US$ 500,000 as a one time entry fee and was required to pay a monthly concession fee to GoU. The generation concession was part of a major power sector reform in Uganda that began with the functional unbundling of the Uganda Electricity Board (UEB), a vertically integrated state owned enterprise. Until April 2001, UEB was the sole electricity generator as well as the only transmitter and distributor of electricity in the country and enjoyed a legal monopoly status. However, in April 2001, UEB was divided into three separate limited liability companies – The Uganda Electricity Distribution Company Ltd (UEDCL), The Uganda Electricity Transmission Company Ltd (UETCL) and the Uganda Electricity Generation Company Ltd (UEGCL). The Electricity Regulatory Authority (ERA), established in 2000, is an independent body responsible for regulating the electricity sector in Uganda. At the time of the concession, the two power stations generated 95% of Uganda’s electricity supply. Two more units of 40MW were expected to be installed at the Kiira power station by early 2005 and UEGCL was to oversee the implementation. None None