Eskom has officially withdrawn all its operations from Uganda.
The move follows exactly 20 years after Eskom Uganda Limited, a subsidiary of Eskom Enterprises, took over the operation and maintenance of the Kiira and Nalubaale hydroelectric power plant along the Nile River on 1 April 2003.
However, the concession ended at the end of March and all assets and interests have since been transferred to the state-owned Uganda Electricity Generation Company.
Kiira and Nalubaale have been operated at an average energy availability rate of almost 97% for the past two decades; A “commendable achievement” given South African power stations’ average energy availability rate of less than 60%.
Andrew Etzinger, chairman of the board of Eskom Uganda Limited, says Kiira and Nalubaale have been well maintained and handed over to the Ugandan government in good working condition.
Uganda’s president, Yoweri Museveni, decided last year to nationalize power generation.
Etzinger says the issue of the concession not being renewed enables him to focus on the performance of South Africa’s power stations and tackle the power crisis at home.
“The decision not to consider the renewal of the agreement is in line with this strategic direction to put more effort into reversing Eskom’s performance in South Africa.
“The end of the agreement will not have any negative effect on the country’s supply, as Uganda and South Africa are not electrically connected to each other.”
Etzinger further pointed out that Eskom Uganda Limited contributed more than US$50 million to Uganda’s economy with the help of taxes and other charges. The company also fulfilled its corporate social responsibility and invested US$3 million in Ugandan communities.
This while Uganda’s past electricity demand over the two decades has benefited from training and the development of technical skills in which the company has invested, says Etzinger.
#UEDCLUpdate: This morning,the UEDCL MD @PaulMwesigwa10 joined @MEMD_Uganda @HonOkaasai & @UegclOfficial to witness the retransfer of the Nalubaale-Kiira Complex (380MW) from @Eskomug at Jinja whose 20-year concession ends today. @ERA_Uganda @kusasira_enock pic.twitter.com/LzYbQufJw7
— UEDCL (@UEDCLTD) March 27, 2023
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