Uganda: Parliament Approves $190 Million Loan To Compensate Power Distributor Umeme As Concession Expires End Of March

Uganda’s parliament has approved a government request to borrow $190 million from Stanbic Bank (link unavailable) to compensate power distributor Umeme Limited (link unavailable) for unrecovered investments after its concession expires at the end of March 2025, according to Ruth Nankabirwa Ssentamu, Minister for Energy and Mineral Development.

“Parliament has approved our request as @GovUganda (government) to borrow $190 million from Stanbic Bank for the buyout of Umeme,” Ruth Nankabirwa said in a post on social media platform X late Thursday.

Umeme is listed on both the Ugandan and neighboring Kenyan stock exchanges and has monopoly rights to distribute electricity in Uganda through the concession, which started in 2005.

The company was notified that the license, due to expire at the end of this month, would not be renewed.

According to the concession terms, the government must compensate Umeme for unrecovered capital investments in the power distribution network by the end of the concession period.

The concession’s expiration is likely to leave over 190 workers jobless.

Source: https://energynewsafrica.com