Eskom in risk of losing Ugandan power generation contract

Uganda: The Ugandan government is currently reviewing the terms of the power generation contract it signed with Eskom over 10 years ago.

Eskom won a 20-year concession to manage the then new 200 MW Kiira power station and the 50 year old 180 MW Nalubaale power station in 2003 through a locally-registered subsidiary.

Under the deal, Eskom was to inject $100 million into the assets over the 20-year concession period.

However, Eskom Uganda managing director Thozama Gangi admitted that the company had invested only $25 million in the plants five years before the end of the concession.

Gangi was cited stating that $4 million has been approved for investment in the plants this year while another $26 million would come in over the next three years.

It is reported that Ugandan President Yoweri Museveni is in favour of returning power generation to the Uganda Electricity Generation Company.

The invested $25 million mainly went into upgrading the power stations’ control system to automation and to conducting multiple studies on the power house’s cracking walls.

Source: ESI Africa