MPs halt $55m loan request for electricity

By Moses Mulondo

MEMBERS of Parliament on the national economy committee on Tuesday stopped ministers from making a presentation regarding a $55.1m loan for constructing a power transmission line in the western region.

The ministers Matia Kasaija (finance), Irene Muloni (energy) Simon D’ujanga( state for energy) and technical officers, were grilled by the MPs to provide information of various electricity distribution projects in different parts of the country before they could entertain any more loan request.

“The last loan for Mirama-Kabale transmission line was in the western region. Now even this one is going to the western region. Why do we borrow loans for only the western region? Is this a national parliament or a parliament for the western region? This is outrageous. We should not even proceed,” said Aruu County MP Odonga Otto.

Upe County MP Lolem Micah Asile said: “Let us suspend the presentation on the new loan request until information regarding electricity transmission lines in different parts of the country is brought.”

Kagoma County MP Fredrick Mbagadhi said: “I think we have to adhere to the concerns of our colleagues. The ministers should have come with the list of projects in different parts of the country.”

Ayivu County MP Benard Atiku complained that most parts of his West Nile have also been neglected.

Minister Muloni explained that the $55.1m loan which will cover the Hoima-Nkenda and upgrading Masaka-Mbarara transmission lines is majorly aimed at availing adequate electricity for the oil production activities in the western region. 

Regarding allegations about regional imbalance in electricity transmission, Muloni said: “It is not true that there is regional imbalance. We have so many transmission lines going on in different parts of the country in the north, east, west and the central region.”

Explaining the Mirama-Kabale distribution line, the committee chairman Xavier Kyoma said: “As a committee we are concerned about regional balance. But the Mirama-Kabale loan also covers districts in the East and North-East.”

The MPs also raised concern on why Uganda government exports electricity to the neighbouring countries when 84% of the country is not connected to electricity.

Muloni explained that the $55.1m loan which will cover the Hoima-Nkenda and upgrading Masaka-Mbarara transmission lines is majorly aimed at availing adequate electricity for the oil production activities in the western region. 

In response, Muloni said: “Our current power generation capacity is at 850MW and the demand is at 510MW. It is the excess that we sell out. By 2018 when Karuma and Isimba dams will be operational, our generation capacity will have been more than doubled.”

But the Vice Chairperson of the Committee Evelyn Kabuule (Luuka MP) rejected Muloni’s explanation saying, “The demand is at 510MW because the transmission lines have not been extended to most parts of the country. That is why distribution is only at 16%. Priority should be put on spreading the lines across the country.”

MP Stephen Mukitale said: “I think the problem is that we have been generating more power and transmitted less to the different parts of the country. We need to balance generation with transmission.”

Muloni explained that the money required to transmit to connect the remaining 84% of the country is in billions of dollars and that is why government is doing it in phases.

Summarizing extra information requested for by the committee members, Kyoma, the committee chairman, asked the energy minister to also return with information on how much power Uganda sells to outside countries and at what cost, terms and conditions for the power distribution agreement between Kenya and Uganda, how much money Uganda has generated from selling power outside in the last five years and what that money has done.

Kasaija said; “As the minister for economic planning, my desire is for inclusive growth so that there is no part of the country that is left behind.”