Energy ministry warns of penalties over UMEME buyout delays
The Energy Ministry has warned that they are nearing a red line if they do not secure 700 billion shillings by March 31st to buy out Umeme’s concession. Failure to do so could lead to significant penalties due to existing contractual obligations. Currently, the government remains uncertain about the final payment to Umeme, as they are awaiting the Auditor General’s final costing. Additionally, they are facing a dilemma over where to find the funds needed to operationalize Uganda Electricity Distribution Company Limited, which requires 70 million dollars (255 billion shillings) annually to sustain the country’s electricity supply.
