KAMPALA – The Minister for Energy and Mineral Development Mary Goretti Kitutu Kimono has revealed that power generation has increased from 924 to 1,254 megawatts since 2016.
Her deputy Mr. Simon Dujang, while representing her made the revelations while giving the sector performance as part of the activities to mark the National Resistance Movement Manifesto Week 2020 at the office of the Prime Minister on Monday.
Ms Kitutu said eleven additional power generation projects are under construction with a total installed capacity of 712.4MW.
“These are: Karuma HPP (600MW), Nyamasagani I HPP (15MW), Nyamasagani 2 HPP (6MW) and Kikagati HPP (14MW), Achwa I (41MW), Muyembe 6.9MW, Nyagak III (5.5MW), Muzizi (44MW), Bukinda (6.5MW), Kakaka (4.6MW) and Busitema University solar (4MW),” she said.
She added that once complete, total installed power generation capacity in the country will be nearly 2,000MW.
The minister said that government has put in place means to lower electricity tariff starting with the tariff for manufacturers to make our local goods competitive in the regional and global market.
“This is being done in a phased approach starting with Extra Large, Large, medium, commercial through to domestic and street lighting customer categories,” said Kitutu.
She noted that refinancing Bujagali brought that tariff from US cents 12 to 8.5 cents and the target of 5 US Cents has been achieved during off-peak hours for extra large consumers.
“Government aims at gradually lowering the tariff for individual residential and social service centres such as schools, and Hospitals.”
She revealed that when Isimba and Karuma HPP are fully absorbed it is expected that the weighted generation tariff will reduce from the current US Cents 6.47/kWh (Ush. 243.43) to US cents 5.34/kWh (Ush.200.93), representing a reduction of 17.45%.
While commenting on Rural elictrification program, Ms Kitutu said the FY2020/2021 is to achieve additional 2,896.66 Km of Medium voltage lines and 4,219.21 Km of Low Voltage lines.
“All district headquarters have been connected to the National electricity grid except Kotido, Buvuma and Kaabong Districts,” she revealed.
The minister noted that government has secured funding to electrify a total of 620 administrative centres which 558 Sub-County headquarters, 52 Town Councils and 10 divisional headquarters.
She said a total of 252,460 connections was achieved under the Electricity Connections Policy since November 1 2018 when it started implementation.
“Additional 388,000 connections are marked for implementation in the FY2020/21”
Commenting on the oil feild development, Ms Kitutu revealed that government is in advanced stages of discussions with the licensed oil companies regarding legal and commercial aspects related to the oil and gas projects.
“Agreement on this, will pave way for the oil companies to take a Final Investment Decision.These efforts have been fostered by the recent sale of Tullow shares in the Albertine Graben to TOTAL E&P Uganda B.V. that is pending GoU approval,” she said.
She added that, “The Refinery Development Project includes a 213 km products pipeline from Hoima to Mpigi District.”
The minister said the Project is expected to cost about USD 3.5 Billion and will have Debt (70%) and Equity (30%).
Ms Kitutu further revealed that the Kabaale Airport and Terminal Master plan and detailed engineering designs for phase 1 were completed.
“Construction of the Phase I of the airport commenced and is 40% complete. Phase I is expected to be completed at the end of 2020. The rest of the works to be completed in 2023,” she said.
However, she said the minstry still faces challenged which include among others inadequate financing for development.
“The private sector is reluctant to invest in power generation projects as they require guarantees from Government like Escrow Accounts and Sovereign Guarantees, ” she said.
She added that land ccquisition for government projects is taking a long time and a considerable budget. “Vandalism on the transmission lines and other installations. ”
The minister revealed ministry’s plans remaining include implementation and completion of transmission projects, completion of Isimba Bridge.
“Airborne geophysical survey of Karamoja starting as soon as lockdown conditions permit, Opening of new Oil and Gas Exploration…, ” the ministry said.