Umeme in negotiations for Power distribution Concession deal renewal
The chairman board of directors UMEME ltd, Patrick Bitature reveals that negotiations have started between them and government into the second concession of their power distribution.
This was during a press conference held at Kampala Serena Hotel after the institution’s annual general meeting.
Bitature explains that the reason behind the early negotiations with the Ministry of Energy is because the company intends to secure funding on longterm tenure when the price is low globally and ensure that power tariffs can be brought down.
However, Bitature was noncommittal on the time the negotiations will last but only revealed that the two parties are working to have a deal by the end of 2019.
Umeme’s pronouncement comes at a time when President Yoweri Museveni in his 12th March 2018 letter warned the Ministry of Energy against renewing Umeme’s concession arguing that the country should be looking for cheaper ways of modernizing and expanding the distribution and distribution lines.
Umeme’s power distribution concession is due to expire in March 2025 having started in March 2005 when the South African company took over electricity distribution in Uganda.
Bitature is optimistic that the negotiations will yield fruitful deliberations considering their services rendered to the country and still if they are cancelled, the government will have to meet the penalties in the costs UMEME will have incurred in terms of investments.