Uganda’s Power Generation Agency Asset Base Expands

BY SAMUEL NABWIISO 

Uganda Electricity Generation Company Limited (UEGCL) has released its audited financial report for the last 18 months ended June 2017.

According to the information unveiled, UEGCL registered big achievement in the Audited period.

The report which was released by the UEGCL Board of Directors chairperson   Eng Proscovia Margaret Njiki at the Ministry of Finance shows that the Company’s assets have improved as compared to the previous years.

“Let me inform the UEGCL stakeholder that the total assets as at 30th June 2017 had grown to UGX3.3 trillion from UGX1trillion in 2015 as result of ongoing projects. As the supervisors of the agency we shall continue ensuring that the agency is on good track as performance is about,” she promised.

UEGCL   Board of Directors chairperson   Eng Proscovia Margaret Njiki (R) and the state minister for fiance David Bahati at the release of the Audited report for UEGCL

On the Financial over view, the Njuki said the agency did not performed as it was expected due to economic challenges affecting the country’s economy.

The Company revenue dropped to Shs17.5 billion from Shs54 Billion in 2015.

This was due to the writing off of long outstanding debt of Shs30.9 billion from Uganda Electricity Transition Company Limited, and also the write back of Government liability of about Shs42 billion.

Commenting on the future outlook for the agency, Njuki said they are committed to support the growth of UEGCL despite the economic challenges which are stressing the performance of the agency.

“We are  very optimistic that  the company  will  continue  to grow  despite  the challenges  in the operating  environment, and economic conditions  which are  likely to persist,” she promised.

In the same Audited report, the office of the Auditor General raised issues which should be worked on if UEGCL is to perform better as it’s expected from the general public.

Some of the issues raised include the concession  management  for Nalubaale and Kiira Hydropower  stations  which the  Auditor General John  Muwanga , said it risks  the plants  being in worse shape  by the end of  the concession  due to a wanting operation and maintenance  regime by Eskom.

The Auditor general also  cast  doubt  on the competence of the supervising  engineer  for Karuma hydropower project, Energy  Infratech PYT Limited, due to several  quality  assurance  issues  identified  onsite during  the audit period .

UEGCL is the government implementing agency for the flagship hydropower projects of Karuma (600MW) and Isimba (183).

These two projects both now over 70 % complete are scheduled for commissioning by the end of 2018.

David Bahati, the Minister of state for Finance commended UEGCL for the good work the agency is doing to ensure that the country have enough energy to support the Country’s development plans.

However, the minister questioned the agency to strictly supervise all power projects that are ongoing in the country to ensure that there’s value for Money.

“We can some good work being done by the Agency, UEGCL is one of the best government parastatals  m but more effort is needed especially in the supervising of the contractor that were contracted to execute government power projects” The Minister Advised.

Dr.Eng Harrison Mutikanga, UEGCL chief executive officer told the stakeholders during the 7^thAnnual general Meeting for UEGCL that they are ready to deliver the 920MW in the next five years but challenged government to increase on the resources it allocates o the agency.