Kampala, Uganda | JULIUS BUSINGE | Uganda Electricity Generation Company Limited (UEGCL) announced on Dec.17 that it had made a net profit of Shs24.7bn for the financial year 2018/19, up from a loss of Shs10.8bn a year before.
Officials said the profit, the first since the company’s inception in 2001, mainly came from electricity that was sold from the recently commissioned 183MW Isimba Hydro Power Dam. The company had never made profit because, according to officials, “it was only earning little money termed as ‘administration fee’ from Nalubaale Hydropower Electric Station”.
Officials said that with the launch of Karuma dam (600MW) and more demand for power from consumers, the company’s profitability is expected to improve going forward.
“This is cardinal to UEGCL as our intention is to ensure that the generation assets are run efficiently and their posterity guaranteed,” said Executive Director Eng. Harrison Mutikanga.
“UEGCL can effectively finance or co-fund future generation assets,” he said.
Company officials including Eng. Proscovia Margaret Njuki and Eng. Mutikanga the Board Chairperson and Executive Director for the company respectively presented the financial performance to Ministry of Finance Ministers Matia Kasaija and Evelyn Anite (in charge of privatization) during the annual general meeting.
Generally, the company’s turnover increased from Shs8.2bn in FY2017/18 to Shs61.6bn FY2018/2019.
UEGCL is a government agency mandated to establish, acquire, maintain and operate electricity generation facilities and to promote research and development in the electricity generation sector while running the company on sound business principles.
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