The State-owned Uganda Electricity Generation Company Limited (UEGCL) is embarking on a transformative journey towards growth and sustainability through its comprehensive strategic plan for the period up to 2028. The plan focuses on sustainable business practices, cost-efficient power generation, and heightened operational efficiency.
One of the flagship initiatives in the strategic plan is the completion, commissioning, and initiation of commercial operations at the Karuma Hydropower Dam. This monumental project boasts a generating capacity of 600MW, signifying a significant contribution to Uganda’s energy landscape.
UEGCL is also committed to advancing the Nyagak III hydropower project and making essential investments in the Nalubaale and Kiira hydroelectric power plants. These endeavors aim to ensure the enduring viability of these assets, which have served not only Uganda but also Kenya and Rwanda for decades.
Addressing funding and cash flow constraints is another priority for UEGCL as it fortifies its financial standing. This move aligns with the ongoing rationalization and merger of government agencies. Minister of Energy and Mineral Development, Ruth Nankabirwa, has affirmed the renewal of contracts for UEGCL’s staff, emphasizing stability within the workforce during the merger talks.
UEGCL’s robust financial performance for the fiscal year 2022/2023 underscores its capacity for growth. The company witnessed a remarkable 63% increase in revenue, reaching Shs343.7 billion. Profit after tax also surged by 22% to Shs34 billion, attributed to increased electricity sales and additional revenue from the commissioning tests at the Karuma Hydropower Plant.
Eng. Harrison Mutikanga, the Chief Executive Officer of UEGCL, attributed the company’s success to innovation, collaboration, and commitment. He emphasized the importance of operational efficiency as a strategic priority, aiming to strengthen the performance of power plants for future success.
The company’s performance and plans were presented at the Annual General Meeting (AGM) held at the Ministry of Finance Headquarters in Kampala at the end of the previous year. UEGCL’s expansion during the five-year strategic plan (2018-2023) included extending its operational footprint from Isimba and Namanve facilities to the Karuma Hydropower Dams.
UEGCL envisions the evolution of the operation and maintenance business model for its facilities, with power plants becoming autonomous strategic business units. This transformation is expected to bring private sector-like tenets, including the possibility of listing on the stock market, according to the company’s annual report and executives.
