News 

Friday, November 24, 2017 

Uganda Power Generation Agency asset base goes up

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

“Let me inform UEGCL shareholders that the total assets as at 30th June 2017 have grown to UGX3.3 trillion from UGX1trillion in 2015 as result of ongoing projects. As the supervisors of the agency, we shall continue to ensure that it is on good track,” said the UEGCL   Board of Directors Chairperson Eng Proscovia Margaret Njiki.

Njuki said the agency did not perform as it was expected due to economic challenges that affected the country’s economy.

The Company  revenue  dropped  to UGX17.5 Billion  from UGX54 Billion in 2015, this was due to  the written  off of long outstanding debts amounting to UGX30.9 Billion from Uganda Electricity  Transition Company  Limited and the writing off  Government liability of about UGX42 Billion.

Njuki said they are committed to support the growth of UEGCL despite the economic challenges that are stressing its performance..

“We are very optimistic that the company will continue to grow despite the challenges in the environment we are operating in,” she said.

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 included the concession  management  for Nalubaale and Kiira Hydropower  stations  which the  auditor General John  Muwanga , said risks  the plants  being in worse shape  by the end of  the concession  due to a wanting operation and maintenance  regime done 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 they are doing to ensure that the country have enough energy to support the development plans.

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

“We can see some good work being done by the agency. UEGCL is one of the best government parastatals doing well but more effort is needed especially in supervising contractors that are contracted to execute government power projects,” said Bahati.

 

 

By SAMUEL NABWIISO, Friday, November 24th, 2017