WENRECO pleads with MPs
Nov 10, 2009
THE West Nile Electricity Company (WENRECo) has pleaded with Members of Parliament (MPs) to be allowed to complete the Nyagak mini-hydro-power project.
By Madinah Tebajjukira
THE West Nile Electricity Company (WENRECo) has pleaded with Members of Parliament (MPs) to be allowed to complete the Nyagak mini-hydro-power project.
Kevin Kariuki, the head of infrastructure at the Industrial Promotion Services, said although the firm had funding problems previously, it had lined up significant funding from “credible†developmental finance institutions.
“WENRECo has obtained funding commitments from France’s Agence Française de Développement, KfW of Germany and IFC.
“This will supplement the equity funding from the firm’s shareholder, Industrial Promotion Services,†he told MPs on Monday.
Kariuki and his team had appeared before the government assurance committee to explain why the project had taken long to be completed.
The Electricity Regulatory Authority (ERA) officials also appeared before the same committee to explain why they had failed to terminate the firm’s contract.
Kariuki explained to the committee chaired by Aruu MP Odonga Otto that because funding promised by the Government was not forthcoming, it was only fair to give the firm an opportunity to mobilise funding to complete the project.
“Although WENRECo deemed such funding important, it has taken long. “It is only fair that we are given an opportunity to mobilise our own funding to complete the project,†Kariuki pleaded.
However, the legislators, mainly from the West Nile region, called for the immediate termination of WENRECo’s contract, saying it was a ‘ghost’ company, which had failed to provide electricity to the region for a long time.
But ERA’s chief, Frank Ssebowa, warned the legislators that such a decision could not be taken hurriedly because it has legal implications.
“We cannot just revoke WENRECo’s licence because people are asking us to do so. Such a decision has a lot of legal implications,†Ssebowa said.
“It is only the Solicitor General who can direct so. Otherwise, the Government might lose huge sums of money in case it is sued for breach of contract. A lot of issues have to be put into consideration before we can terminate the contract.â€
The Arua Woman MP, Christine Bako, had earlier told the committee that WENRECo had failed to construct the Nyagak dam, keeping the whole region in ‘darkness’.
She wondered why the firm’s contract had not been terminated. Ssebowa emphasised that though there were a few irregularities with WENRECo, the company offered the cheapest electricity tariffs in the country.
WENRECo charges domestic consumers’ sh359.6 per unit as compared to the sh426 paid by other Ugandans who get power from UMEME.
THE West Nile Electricity Company (WENRECo) has pleaded with Members of Parliament (MPs) to be allowed to complete the Nyagak mini-hydro-power project.
Kevin Kariuki, the head of infrastructure at the Industrial Promotion Services, said although the firm had funding problems previously, it had lined up significant funding from “credible†developmental finance institutions.
“WENRECo has obtained funding commitments from France’s Agence Française de Développement, KfW of Germany and IFC.
“This will supplement the equity funding from the firm’s shareholder, Industrial Promotion Services,†he told MPs on Monday.
Kariuki and his team had appeared before the government assurance committee to explain why the project had taken long to be completed.
The Electricity Regulatory Authority (ERA) officials also appeared before the same committee to explain why they had failed to terminate the firm’s contract.
Kariuki explained to the committee chaired by Aruu MP Odonga Otto that because funding promised by the Government was not forthcoming, it was only fair to give the firm an opportunity to mobilise funding to complete the project.
“Although WENRECo deemed such funding important, it has taken long. “It is only fair that we are given an opportunity to mobilise our own funding to complete the project,†Kariuki pleaded.
However, the legislators, mainly from the West Nile region, called for the immediate termination of WENRECo’s contract, saying it was a ‘ghost’ company, which had failed to provide electricity to the region for a long time.
But ERA’s chief, Frank Ssebowa, warned the legislators that such a decision could not be taken hurriedly because it has legal implications.
“We cannot just revoke WENRECo’s licence because people are asking us to do so. Such a decision has a lot of legal implications,†Ssebowa said.
“It is only the Solicitor General who can direct so. Otherwise, the Government might lose huge sums of money in case it is sued for breach of contract. A lot of issues have to be put into consideration before we can terminate the contract.â€
The Arua Woman MP, Christine Bako, had earlier told the committee that WENRECo had failed to construct the Nyagak dam, keeping the whole region in ‘darkness’.
She wondered why the firm’s contract had not been terminated. Ssebowa emphasised that though there were a few irregularities with WENRECo, the company offered the cheapest electricity tariffs in the country.
WENRECo charges domestic consumers’ sh359.6 per unit as compared to the sh426 paid by other Ugandans who get power from UMEME.