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 1, 2025.
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
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, the Ministry 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.
The Ministry takes note of the current power reliability challenges; and has required UMEME to continue fulfilling it’s contractual obligations till the end of March 2025 while preparing UEDCL to ensure immediate corrective measures after 1st April 2025.
