By Ibrahim Kasita

WORK on the sh351b Mutundwe thermal plant has started. The diesel-powered equipment will be installed by June, the Uganda Electricity Transmission Company (UETCL) has said.

Eriasi Kiyemba, the UETCL managing director, explained that the 50-megawatt plant will not affect the end-user tariffs. The project is funded by the World Bank.
Aggreko International, which operates the Lugogo and Kiira thermal power station, is installing the generators.

The plant was expected on board a year ago but the harmonisation of the tariffs, plant risk-sharing and fuel capacity charge, delayed the project.

Policy-makers had earlier argued that the economy could not finance all the three thermal plants at Lugogo, Kiira and Mutundwe because they were expensive. They opted for the extension of the Lugogo plant’s contract since it was expiring this month.

Kiyemba said Lugogo thermal plant’s contract had been extended to August when the Namanve heavy-fuel thermal plant is commissioned.

“The extension period is aimed at providing a stop-gap relief before cheaper power comes online,” he elaborated.