News
Friday, November 24, 2017
Uganda Power Generation Agency asset base goes up
KAMPALA, UGANDA- Uganda Electricity Generation Company Limited (UEGCL) has released its audited financial report for the last 18 months ended June 2017.
“Let me inform UEGCL shareholders that the total assets as at 30th June 2017 have grown to UGX3.3 trillion from UGX1trillion in 2015 as result of ongoing projects. As the supervisors of the agency, we shall continue to ensure that it is on good track,” said the UEGCL Board of Directors Chairperson Eng Proscovia Margaret Njiki.
Njuki said the agency did not perform as it was expected due to economic challenges that affected the country’s economy.
The Company revenue dropped to UGX17.5 Billion from UGX54 Billion in 2015, this was due to the written off of long outstanding debts amounting to UGX30.9 Billion from Uganda Electricity Transition Company Limited and the writing off Government liability of about UGX42 Billion.
Njuki said they are committed to support the growth of UEGCL despite the economic challenges that are stressing its performance..
“We are very optimistic that the company will continue to grow despite the challenges in the environment we are operating in,” she said.
The office of the Auditor General raised issues which should be worked on if UEGCL is to perform better as it’s expected from the general public.
Some of the issues raised included the concession management for Nalubaale and Kiira Hydropower stations which the auditor General John Muwanga , said risks the plants being in worse shape by the end of the concession due to a wanting operation and maintenance regime done by Eskom.
The Auditor General also cast doubt on the competence of the supervising engineer for Karuma hydropower project, Energy Infratech PYT Limited due to several quality assurance issues identified onsite during the audit period .
UEGCL is the government implementing agency for the flagship hydropower projects of Karuma (600MW) and Isimba (183).These two projects both now over 70 % complete are scheduled for commissioning by the end of 2018.
David Bahati the Minister of state for Finance commended UEGCL for the good work they are doing to ensure that the country have enough energy to support the development plans.
However the minister asked the agency to strictly supervise all power projects that are ongoing in the country to ensure that there’s value for Money.
“We can see some good work being done by the agency. UEGCL is one of the best government parastatals doing well but more effort is needed especially in supervising contractors that are contracted to execute government power projects,” said Bahati.
By SAMUEL NABWIISO, Friday, November 24th, 2017