UEGCL asks govt to pay Shs40b for operation of Namanve plant
Officials from the Ministry of Energy, UEGCL and Namanve Thermal Power plant tour a section of the 50 MW plant in Namanve, Mukono district last week. Photo / Courtesy
What you need to know:
- Information from UEGCL indicates that the power station, whose assets were returned to government in 2022, has not received money for maintenance and tariffs for over a year now
Uganda Electricity Generation Company Limited (UEGCL) has asked the Ministry of Energy to help it secure Shs41b to operate the 50 megawatts Namanve Thermal Power Plant.
Information from UEGCL indicates that the power station, whose assets were returned to government in 2022, has not received money for maintenance and tariffs for over a year now.
UEGCL is, therefore, asking the Energy Ministry to help it secure payment of Shs19b as part of a supplementary request and Shs22b for major maintenance such as overhauling the engines.
This was revealed at the launch of UEGCL’s internal performance contract for the 50 MW Namanve Thermal Power Plant in Namanve, Mukono District at the weekend.
The plant, operated by UEGCL, provides an important emergency buffer to back up hydroelectricity supply. The plant is currently contributing 7 megawatts to the national grid.
Speaking on the sidelines of the launch, Mr David Lubega, the plant’s general manager, said the plant plays a critical role in enhancing energy security in case of an emergency, but noted that it is currently running on a deficit, which interferes with its activities.
“UETCL has been meeting two payments: One is for fuel, and the second is for operation and maintenance. Capacity payment has not been met,” he said.
Uganda Electricity Transmission Company Limited (UETCL) owes the plant more than Shs10b for power supplied for 13 months now.
Since its transfer from Jacobsen on February 22, 2022, UEGCL has been operating the plant and has implemented an indigenous operation and maintenance business model.
Eng Harrison Mutikanga, the UEGCL chief executive officer, noted that there is need to overhaul the engine, but the agency does not have money, making operations costly.
“Honourable Minister, for the whole of last year we were not paid by UETCL. We continue to follow up on the money from the electricity that we sold to them so that it can help us to maintain the plant,” he said.
However, State Minister for Energy Sidronous Okaasai, who applauded UEGCL for coming up with an internal performance contract as a means of fostering efficiency across its operations, did not directly address the matter, but said, he would follow up on the supplementary request that Parliament had approved to support the plant.
Eng Mutikanga said UEGCL had asked for a supplementary to pay staff, noting that now that money had been approved, the Shs19b had not been received, yet they had used the startup funds to refurbish auxiliary facilities of the plant, the warehouse, and the administration block.
