Kakira power plan delayed by pact
May 28, 2006
THE Kakira Sugar Works (KSW) electricity co-generation scheme meant to add 12MW to the national grid has been hampered by delays to endorse a purchase agreement.
By Abubaker Mukose
THE Kakira Sugar Works (KSW) electricity co-generation scheme meant to add 12MW to the national grid has been hampered by delays to endorse a purchase agreement.
Managing director Mayur Madhvani recently said the scheme, which is part of Kakira’s $43m expansion, had been targeted to supply 12MW out of the planned 20MW of power Kakira is to generate from sugarcane biogases.
In 2003 KSW signed an initial power purchase agreement from the energy ministry to feed the grid with 6MW of power for six hours daily, but the project had since failed to take-off despite the growing demand for power.
Mayur said despite the endorsement of the first agreement, the Government had not provided for a transmission line to tap the power from Kakira to Milo Mbili, where it is meant to join the national grid.
“Kakira power can satisfactorily light up Jinja town. However, government is taking longer to finalise the purchase deal, yet we have gone ahead to invest and soon the 12MW shall be available,†Mayur said.
Mayur said the factory is facing a 2MW surplus. “The factory cannot utilise this surplus (2MW) because there is no dedicated line to feed the grid system,†Mayur explained.
However, the Permanent Secretary in the energy ministry, Kalisa Kabagambe, attributed the delays on Kakira and the Uganda Electricity Transmission Company Limited (UETCL).
UETCL is the planned power off-taker from KSW to the national grid.
“We cannot take the blame as government although we continue to encourage electricity co-generation firms to meet the growing need for power. It is UETCL who have delayed to seal the purchase deal with Kakira,†Kalisa said.
Ends
THE Kakira Sugar Works (KSW) electricity co-generation scheme meant to add 12MW to the national grid has been hampered by delays to endorse a purchase agreement.
Managing director Mayur Madhvani recently said the scheme, which is part of Kakira’s $43m expansion, had been targeted to supply 12MW out of the planned 20MW of power Kakira is to generate from sugarcane biogases.
In 2003 KSW signed an initial power purchase agreement from the energy ministry to feed the grid with 6MW of power for six hours daily, but the project had since failed to take-off despite the growing demand for power.
Mayur said despite the endorsement of the first agreement, the Government had not provided for a transmission line to tap the power from Kakira to Milo Mbili, where it is meant to join the national grid.
“Kakira power can satisfactorily light up Jinja town. However, government is taking longer to finalise the purchase deal, yet we have gone ahead to invest and soon the 12MW shall be available,†Mayur said.
Mayur said the factory is facing a 2MW surplus. “The factory cannot utilise this surplus (2MW) because there is no dedicated line to feed the grid system,†Mayur explained.
However, the Permanent Secretary in the energy ministry, Kalisa Kabagambe, attributed the delays on Kakira and the Uganda Electricity Transmission Company Limited (UETCL).
UETCL is the planned power off-taker from KSW to the national grid.
“We cannot take the blame as government although we continue to encourage electricity co-generation firms to meet the growing need for power. It is UETCL who have delayed to seal the purchase deal with Kakira,†Kalisa said.
Ends