Energy minister, Dr Ruth Nankabirwa Ssentamu (L) exiting a workshop recently with Paul Mwesigwa, the UEDCL Managing Director
HABARI DAILY I Kampala, Uganda I As Uganda Electricity Distribution Company Ltd (UEDCL) takes over the electricity distribution network from Umeme today, March 31, 2025, it has disclosed that it will unveil a $50m (Shs185 billion) investment capital, which they already have in their coffers.
Paul Mwesigwa, the UEDCL Managing Director said that in the new business model which they will put in action come April 1, they plan to invest $70m per year.
“And as we speak, we’ve secured $50 million cash which is in our coffers. We are in final stages of accessing the balance of $20 million by the end of the year,” he said.
He noted that because they are on track in terms of investment capital, they have initiated the procurement process for suppliers.
“We believe that by the end of April, most of the capital stock will have been contracted and deployment will restart in two or three months, just after takeover,” he said, further noting that for operation and maintenance, they have stores of all the y need to keep the network going.
“The material in our stores is just ready to start operation and maintenance. Since it takes time to obtain procured material, we placed requests with suppliers several months ago,” he said.
A cross section of the UEDCL management Team
Mwesigwa said that they know that their success will depend on the availability of investment capital. “The success of the electricity distribution business relies on availability of investment capital and ability to maintain a financially sustainable business,” he said.
“Our model of running UEDCL is financial sustainability. We will make sure that whichever money is invested, whether internally generated, is recovered to create growth. In that environment, we will be able creates a healthy and good balance sheet.”
In a public advisory, UEDCL assured customers that all electricity services will remain uninterrupted throughout and beyond the transition.
“Electricity vending and loading will continue normally via MTN, Airtel, banks, and other collection platforms,” the company said in a statement, amidst public concern about the risk of disruptions to electricity supply as Uganda transitions from a private distributor to full government control.
UEDCL was formed in 2001 after the unbundling of the Uganda Electricity Board (UEB) and is a government-owned company responsible for owning and managing the electricity distribution network below 33kV.
Umeme, a private contractor, took over the majority of assets and responsibilities of UEDCL for a period of 20 years on a concessionary basis, with their contract set to expire today, March 31, 2025.
