Umeme pays $24m lease fees
Oct 04, 2006
UMEME has paid about $24.3m (sh44.9b) to the Uganda Electricity Distribution Company (UEDCL) as a lease fee.
By Ibrahim Kasita
UMEME has paid about $24.3m (sh44.9b) to the Uganda Electricity Distribution Company (UEDCL) as a lease fee.
The fee is for the 18-month probation period that ended in August.
The leased assets are: electricity networks, buildings, vehicles, power stations and transformers.
Umeme is a joint venture between Globeleq, a CDC company of the UK and South Africa power giant, Eskom.
UEDCL’s company secretary and acting managing director, Esther Mulyagonja, said in an interview that Umeme has been paying $1.35m (sh2.4b) every month since March 2005.
“We are interested in payments and the strengthening of our network distribution. That is our major concern,†Mulyagonja said.
“We are also watching network installations. But what bothers us most is the lease fee,†she said.
Mulyagonja said Umeme’s role was to collect monthly revenues and invest in the national power distribution networks on behalf of the Government.
A Umeme official said, “We pay a lease fee to UEDCL every month. They are the landlords and we are their tenants.â€
“I cannot divulge the amount of money,†the source said.
However, Mulyagonja said they were discussing with Umeme about the possibility of adjusting the lease fee.
Under an agreement signed last year, Umeme was allowed to run power distribution for 18 months before deciding whether to take over the full 20-year concession.
UEDCL has extended the probation period up to December to allow Umeme more time to decide on taking the concession.
UMEME has paid about $24.3m (sh44.9b) to the Uganda Electricity Distribution Company (UEDCL) as a lease fee.
The fee is for the 18-month probation period that ended in August.
The leased assets are: electricity networks, buildings, vehicles, power stations and transformers.
Umeme is a joint venture between Globeleq, a CDC company of the UK and South Africa power giant, Eskom.
UEDCL’s company secretary and acting managing director, Esther Mulyagonja, said in an interview that Umeme has been paying $1.35m (sh2.4b) every month since March 2005.
“We are interested in payments and the strengthening of our network distribution. That is our major concern,†Mulyagonja said.
“We are also watching network installations. But what bothers us most is the lease fee,†she said.
Mulyagonja said Umeme’s role was to collect monthly revenues and invest in the national power distribution networks on behalf of the Government.
A Umeme official said, “We pay a lease fee to UEDCL every month. They are the landlords and we are their tenants.â€
“I cannot divulge the amount of money,†the source said.
However, Mulyagonja said they were discussing with Umeme about the possibility of adjusting the lease fee.
Under an agreement signed last year, Umeme was allowed to run power distribution for 18 months before deciding whether to take over the full 20-year concession.
UEDCL has extended the probation period up to December to allow Umeme more time to decide on taking the concession.