UEDCL sale for July
By Ricks Kayizzi
THE privatisation of Uganda Electricity Distribution Company Limited (UEDCL) will be completed by July after negotiations with successful bidders are concluded, Syda Bbumba, the energy minister, said last week.
Bbumba said talks between pre-qualified consortium of the UK-based Commonwealth Development Corporation and South Africa�s Eskom were in the final stages.
�Within the next three months, UEDCL will be in private hands. Its sale will help fully transform the energy sector and open it to foreign capital investment,� she said in an interview on the sidelines of the opening of the new Electricity Regulatory Authority (ERA) building.
�Economies are moved by private capital. This move will remove Government inefficiencies and lead to equitable power distribution to all parts of the country,� Bbumba said.
She said the new owner has to add 20,000 new connections per year.
Bbumba said the new owner is also required to rehabilita
te the system in order to curb power fluctuations and overhaul the billing system.
Although there is uncertainty about the fate of the over 1,200 UEDCL employees, she said the body will be concessioned with all the current staff.
�Although we will not be in a position to urge the new owners to retain the current staff, our position is that all employees be given a chance to perform,� Bbumba said.
She said the Electricity Act of 1999 provides for the private sector to work with the public sector to expand power distribution around the country.
Uganda Electricity Generation Company Limited was taken over by the South African-based Eskom in 2002.
Ends
Published on: Tuesday, 27th April, 2004
MSN Toolbar provides one-click access to Hotmail from any Web page � FREE download! -------------------------------------------- This service is hosted on the Infocom network http://www.infocom.co.ug
