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dam-l Fwd: Uganda to privatise electricity utility by next June/LS
Uganda to privatise electricity utility by next June
KAMPALA, May 24 (Reuters) - The state-owned Uganda Electricity Board (UEB)
will be privatised within the next year as part of a restructuring process to
meet growing national and regional power demands, a top official said on
Wednesday.
Power outages are a daily affair in Uganda leading to the loss of up to 90
productive days annually, officials say.
UEB, the country's sole electricity utility, carries a 100 megawatts (MGW)
deficit which officials say is growing at 20 MGW annually.
``Privatisation advisers are in place to advise on how many companies will
be made out of UEB,'' Managing Director Paul Mare told Reuters. ``The plan is
to sell the business, not the assets.
``The concessions for distribution and generation should be granted by
June next year, but in the short to medium term government will retain
transmission.''
The commissioning of a 40 MGW turbine on the Kiira dam last Friday has
done little to alleviate the situation.
The new turbine is one of five on the 200 MGW Kiira dam, an extension of
the 180 MGW Owen Falls dam which was renamed Nalubale by President Yoweri
Museveni on Friday.
Granting concessions to run UEB's core businesses is the tail end of the
restructuring of Uganda's electricity sector.
Last year the government passed a new electricity bill which liberalised
the generation, transmission and distribution of power, allowing American firm
AES Nile Independent Power to build a $500 million dam on the river Nile from
January.
NORPAK, a Norwegian-led consortium, is applying for a licence to build
another 200 MGW dam further down the river.
Meanwhile, Mare said the UEB has cut its staff to 1,900 from 3,000 over
the last three years, and is working to minimise losses from theft and
inefficiency.
With greater capacity and efficiency Uganda could increase power sales to
its neighbours, including Kenya which on Tuesday announced sweeping power cuts
to cope with a deficit of 35 MGW.
``We have a 40-year agreement with Kenya to sell them 30 MGW when we have
a surplus,'' Mare said. ``That will increase with the new capacity.''
Kenya Energy Minister Francis Masakhalia said he expected power imports
from Uganda to rise to 50 MGW soon.
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Aviva Imhof
South-East Asia Campaigner
International Rivers Network
1847 Berkeley Way, Berkeley CA 94703 USA
Tel: + 1 510 848 1155 (ext. 312), Fax: + 1 510 848 1008
Email: aviva@irn.org, Web: http://www.irn.org
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<html>
<br>
<br>
Uganda to privatise electricity utility by next June<br>
<br>
KAMPALA, May 24 (Reuters) - The state-owned
Uganda Electricity Board (UEB) will be privatised within the next year as
part of a restructuring process to meet growing national and regional
power demands, a top official said on Wednesday. <br>
<br>
Power outages are a daily affair in Uganda
leading to the loss of up to 90 productive days annually, officials say.
<br>
<br>
UEB, the country's sole electricity utility,
carries a 100 megawatts (MGW) deficit which officials say is growing at
20 MGW annually. <br>
<br>
``Privatisation advisers are in place to advise
on how many companies will be made out of UEB,'' Managing Director Paul
Mare told Reuters. ``The plan is to sell the business, not the assets.
<br>
<br>
``The concessions for distribution and
generation should be granted by June next year, but in the short to
medium term government will retain transmission.'' <br>
<br>
The commissioning of a 40 MGW turbine on the
Kiira dam last Friday has done little to alleviate the situation. <br>
<br>
The new turbine is one of five on the 200 MGW
Kiira dam, an extension of the 180 MGW Owen Falls dam which was renamed
Nalubale by President Yoweri Museveni on Friday. <br>
<br>
Granting concessions to run UEB's core
businesses is the tail end of the restructuring of Uganda's electricity
sector. <br>
<br>
Last year the government passed a new
electricity bill which liberalised the generation, transmission and
distribution of power, allowing American firm AES Nile Independent Power
to build a $500 million dam on the river Nile from January. <br>
<br>
NORPAK, a Norwegian-led consortium, is applying
for a licence to build another 200 MGW dam further down the river. <br>
<br>
Meanwhile, Mare said the UEB has cut its staff
to 1,900 from 3,000 over the last three years, and is working to minimise
losses from theft and inefficiency. <br>
<br>
With greater capacity and efficiency Uganda
could increase power sales to its neighbours, including Kenya which on
Tuesday announced sweeping power cuts to cope with a deficit of 35 MGW.
<br>
<br>
``We have a 40-year agreement with Kenya to sell
them 30 MGW when we have a surplus,'' Mare said. ``That will increase
with the new capacity.'' <br>
<br>
Kenya Energy Minister Francis Masakhalia said he
expected power imports from Uganda to rise to 50 MGW soon. <br>
<br>
Back to the Electric Power Headlines<br>
<br>
Copyright © 2000 Reuters Limited. All rights reserved. Republication or
redistribution of Reuters Limited content, including by framing or
similar means, is expressly prohibited without the prior written consent
of Reuters Limited. Reuters Limited shall not be liable for any errors or
delays in the content, or for any actions taken in reliance thereon.
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Energy Jobs Site | EnergyYellowPages | Industry Directories | Online
Training | PMA Membership Info<br>
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<div>*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*</div>
<div>Aviva Imhof</div>
<div>South-East Asia Campaigner</div>
<div>International Rivers Network</div>
<div>1847 Berkeley Way, Berkeley CA 94703 USA</div>
<div>Tel: + 1 510 848 1155 (ext. 312), Fax: + 1 510 848 1008</div>
<div>Email: aviva@irn.org, Web:
<a href="http://www.irn.org/" EUDORA=AUTOURL>http://www.irn.org</a></div>
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Lori Pottinger, Director, Southern Africa Program,
and Editor, World Rivers Review
International Rivers Network
1847 Berkeley Way, Berkeley, California 94703, USA
Tel. (510) 848 1155 Fax (510) 848 1008
http://www.irn.org
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