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.
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.
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.