The Minister of Energy and Mineral Development, Hon Ruth Nankabirwa has confirmed government’s readiness to assume control of electricity distribution under UEDCL as the 20-year concession with Umeme Limited nears conclusion on March 30, 2025.
The Minister revealed this in a Wednesday press statement stating that effective April 1, 2025, the Uganda Electricity Distribution Company Limited will officially take over UMEME roles and operations.
“The Ministry of Energy and Mineral Development (MEMD) wishes to reaffirm the Government’s full readiness to take over the electricity distribution concession from Umeme Ltd through its agency the Uganda Electricity Distribution Company Limited (UEDCL) come April 1st, 2025,” Nankabirwa stated.
Umeme’s concession, initiated in 2005, was part of Uganda’s broader strategy to privatize and modernize its electricity distribution infrastructure. Over the past two decades, the private electricity distributor has played a pivotal role in enhancing the efficiency and reach of electricity services across the country.
To facilitate the transition, Nankabirwa says the government has proposed a financial plan to support UEDCL’s initial investments and operational readiness. This includes a request to borrow $50 million, underscoring the administration’s commitment to maintaining and improving the electricity distribution network post-Umeme.
The funds, according to the Minister, are intended to bolster UEDCL’s capacity to manage the infrastructure effectively and ensure consistent service delivery to consumers.
“The Ministry of Finance, Planning, and Economic Development is in advanced stages of securing US$50 million through internal borrowing to support UEDCL capital investments. By the end of next week, these funds will be available to ensure that UEDCL is financially equipped to improve the quality of service,” she explained in the statement shared via the Ministry’s official social media platforms.
“Additionally, approval of the Buy-out amount by Parliament is in advanced stages to support the timely payment of UMEME. The Buy-out amount is a claim by UMEME for capital investments made and not recovered by the end of the concession. This further confirms the Government’s unwavering commitment to honouring its contractual obligations while ensuring a smooth transition in the electricity distribution sector.
Regarding staffing concerns, Nankabirwa said it emphasizes that the restructuring process by UEDCL aims to enhance efficiency, avoid duplication of roles, and ensure cost-effectiveness in electricity distribution.
“The recruitment process has been fair, transparent, and merit-based, ensuring that the best-qualified personnel are retained while prioritizing operational efficiency,” she emphasized.
“The Ministry takes note of the current power reliability challenges and has required UMEME to continue fulfilling its contractual obligations till the end of March 2025 while preparing UEDCL to ensure immediate corrective measures after 1st April 2025.”
As the transition date approaches, the government has assured the public of its dedication to ensuring uninterrupted electricity services. The establishment of the Uganda National Electricity Company (UNEC) is underway, aiming to consolidate various entities within the electricity sector.
Source:Wallnet News
