After two decades of managing Uganda’s electricity distribution network, Umeme Limited is today officially handing over operations to the Uganda Electricity Distribution Company Limited (UEDCL), marking the end of its 20-year concession agreement with the government.
The handover, taking place in Kampala, is a significant milestone in the country’s power sector, transferring assets worth billions of shillings back to government control. The transition follows months of negotiations over the buyout figure, which saw the government reduce Umeme’s proposed $234 million (Shs853 billion) to $118 million (Shs430 billion) after a review by the Auditor General.
According to Umeme managing Director Celestino Babungi, company has already received the agreed buyout sum and is now focused on ensuring a smooth transition. “We have received the money from the government. Our main focus now is the retransfer of assets to ensure continued operations,” he confirmed.
Umeme will be handing over the entire electricity distribution infrastructure, which has significantly expanded over the years. This includes a power network that has grown from 16,000km in 2005 to 42,466km today, and an increase in transformer zones from 6,000 to 16,783. Additionally, the customer base has grown nine-fold, from 250,000 to 2.37 million.
“We are handing over distribution assets including over 17,000 transformers, substations, service centers, and nearly 50,000km of network lines across the country,” Patrick Bitature-UMEME board chairperson emphasized.
On the other hand UEDCL executive Director, Paul Mwesigwa confirmed receipt of 80% of of UMEME assets noting that now that they have obtaining full authority over electricity distribution, their first priority will be connecting at least new 300,000 electricity application.
