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Home Business & Economy

Umeme to Undertake $130 Million Investment before exit

The investment aims to enhance power distribution, upgrade transformers, and rehabilitate substations, emphasizing Umeme's dedication to its contractual obligations until 2025.

Muwanga Ronald by Muwanga Ronald
December 13, 2023
in Business & Economy
0
Umeme to Undertake $130 Million Investment before exit

Umeme, Uganda's electricity distribution company, allocates $130 million for crucial infrastructure projects.

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Umeme, the electricity distribution company in Uganda, reveals plans to invest $130 million (Shs468 billion) in various projects aimed at bolstering the nation’s power sector.

Selestino Babungi, Umeme’s Managing Director, affirms their commitment to fulfilling contractual obligations until the end of their concession in 2025.

The investment encompasses the maintenance, upgrade, and addition of transformers, along with the rehabilitation of substations.

Babungi emphasizes Umeme’s dedication to leaving the power distribution sub-sector in a better state than inherited from the Uganda Electricity Board.

The ongoing investments include the upgrading of substations in key locations such as Hoima, Jinja, Mbale, Mattuga, and Owen Falls.

ERA Chief Executive Officer Zilia Wako Tibalwa and Umeme MD Selestino Babungi

Umeme also addresses the country’s priorities by providing dedicated power lines to hospitals, adopting advanced technology, and ensuring reliable electricity distribution.

Over the years, Umeme has significantly improved the distribution network, making 30,000 new monthly connections and reducing electricity losses from 16.4 percent to 15.2 percent.

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Revenue collection currently stands at an impressive 99 percent since the introduction of the Yaka system.

During the annual tariff review public hearing, Umeme and other power sector companies, including Uganda Electricity Generation Company (UEGCL), Uganda Electricity Transmission Company (UETCL), and Uganda Electricity Distribution Company LTD (UEDCL), presented their planned expenditures for 2024 to the Electricity Regulatory Authority (ERA).

Umeme’s commitment to infrastructure development aligns with the broader goal of ensuring a seamless transition when their concession concludes.

Tags: UmemeUmeme yaka
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Muwanga Ronald

Muwanga Ronald

Muwanga Ronald is editor in chief of the UGANDANZ news website. He was formerly editorial director of UGANDANZ.COM, overseeing the publication’s digital operations. Before joining UGANDANZ in December 2018, Ronald was managing editor of NILE HOST In 2014, he was a finalist for the UJA Awards for Young Journalists for his reporting on the women's emancipation. Under his leadership NILE HOST won Media Industry Newsletter's Best of the Web award in 2018. A graduate of Makerere University, Ronald speaks Luganda and French and lives in Kampala with his wife and two children.

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