The Independent Uganda: You get the Truth we Pay the Price
The company’s financial performance for the fiscal year 2022/2023 demonstrated robust growth, with a remarkable 63% increase in revenue, reaching Shs343.7 billion
Kampala, Uganda | JULIUS BUSINGE | State-owned Uganda Electricity Generation Company Limited (UEGCL) is poised for transformative growth and sustainability as it implements its strategic plan for the period up to 2028, focusing on sustainable business practices, cost-efficient power generation, and heightened operational efficiency.
Key among the initiatives in the plan is the completion, commissioning, and initiation of commercial operations at the Karuma Hydropower Dam, a monumental project with a generating capacity of 600MW.
The company is also dedicated to advancing the Nyagak III hydropower project and making essential investments in the Nalubaale and Kiira hydroelectric power plants to ensure the enduring viability of these assets which served the country as well as Kenya and Rwanda for decades.
The company also hopes to address funding and cash flow constraints, a move aimed at fortifying its financial standing as it prepares its workforce for the ongoing rationalization and merger of government agencies.
However, Minister of Energy and Mineral Development, Ruth Nankabirwa, has already affirmed the renewal of contracts for the company’s staff amidst the ongoing merger talks in a bid to ensure stability within the workforce and foster an environment conducive to achieving its goals.
Robust profit growth
This development comes as UEGCL’s financial performance for the fiscal year 2022/2023 demonstrated robust growth, with a remarkable 63% increase in revenue, reaching Shs343.7 billion.
The profit after tax also witnessed a commendable surge, rising by 22% to Shs34 billion. This stellar performance was attributed to increased electricity sales from the Nalubaale and Kiira Hydroelectric Power Plants, as well as additional revenue from the commissioning tests at the Karuma Hydropower Plant and amortized grant income.
Eng. Harrison Mutikanga, the Chef Executive Officer of UEGCL, attributed the company’s success to innovation, collaboration, and commitment.
“Our financial performance was driven by prudent financial management and strategic investments,” he said adding, “Operational efficiency is at the forefront of our strategic priorities and we seek to further strengthen the performance of our power plants to drive our future performance.”
The company’s performance and plans were publicly unveiled at the company’s Annual General Meeting (AGM) held at the Ministry of Finance Headquarters in Kampala at the end of last year.
UEGCL has recorded a significant expansion during the five-year strategic (2018-2023) plan including expanding its operational footprint involving extending from Isimba and Namanve facilities to the Karuma Hydropower Dams.
The operation and maintenance business model for the facilities is meant to evolve to see the different power plants become autonomous strategic business units that will later run as subsidiary companies.
This is envisaged to also enable the company realize the benefits from the private sector-like tenets including the possibilities of listing on the stock market according to its annual report and executives.
Uganda currently has an electricity generation installed capacity of 1346.7MW compared to the NDPIII target of 3500MW by 2025. Of the current installed capacity, UEGCL accounts for 913MW equivalent to 68% of the market share by installed capacity.
This installed capacity is expected to increase by June 2024 with the full commissioning of the six generating units at Karuma HPP and the 6.6MW Nyagak SHPP.
