KAMPALA – The Uganda Electricity Generation Company Limited (UEGCL) last year registered Shs24.8b in profit from Shs10.8b loss in 2018, following commercial operations of Isimba dam.
The generator last made a profit in 2015 but was later immersed in a pool of losses until 2019.
While releasing its results, UEGCL also revealed that it grew its revenue.
“Revenues increased from Shs8.2b in 2018 to Shs61.6b in 2019. This was a result of commissioning and commercial operation of Isimba Hydropower plant on March 31, 2019,” Ms Proscovia Margaret Njuki, the board chairperson UEGCL said recently noting that the asset base grew by 19 per cent from Shs5.7 trillion in 2018 to Shs6.7 trillion as at June 30, 2019.
The asset base growth was attributed to completion of Isimba dam and works in progress at Karuma hydropower project.
183megawatt Isimba dam, which is UEGCL’s bailout from the losses last year billed Shs49.4b for the 320gigawatt hours of electricity sold to Uganda Electricity Transmission Company Limited for six months ended June 2019.
The company however registered increased borrowings with outstanding loans at Shs5.4 trillion from Shs4.8 trillion in 2018.
UEGCL also noted that lack of clear discernment between the policy and project development roles between itself and the ministry of energy makes futuristic generation planning challenging.
In addition, delays surrounding project implementation of Karuma and Muzizi hydropower projects remain challenging to the generator.
Karuma dam, whose commissioning was scheduled for last year is yet to be launched due to delays propelled by land acquisition challenges for the transmission evacuation lines.