Eskom hands hydropower plants back to Uganda as concession ends
Following the end of the Eskom Uganda Limited (EUL) concession on March 31, Eskom has assured that a smooth transfer of assets and interests to State-owned Uganda Electricity Generation Company has taken place.
The EUL came to its natural end after being established in 2002, involving the operation and maintenance of the Kiira and Nalubaale hydroelectric power stations for 20 years.
Eskom says the facilities were well maintained in accordance with prudent utility practices and were handed over in sound working conditions, as per the concession and assignment agreement between the two utilities.
Over the period, Eskom ran the plants at an average availability rate of 96.6%, which the power utility says is a commendable performance.
During Eskom’s operation of the plants, EUL invested in training and development of technical skills and competencies, which have benefitted the overall electricity sector in Uganda.
EUL also contributed more than $50-million to the Ugandan economy through taxes and levies, and invested $3-million in communities.
Equally, Eskom is striving to consolidate its resources and improve the generation fleet performance in South Africa, to ensure reliable power supply for the country. To this end, Eskom has decided not to renew the agreement with Uganda, to keep its focus on the South African power generation fleet.
Eskom assures that the end of the agreement will have no negative impact on electricity supply in either country, as the countries are not electrically interconnected.
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