Power cuts cause sh432b in annual loses
May 23, 2007
THE economy loses sh431.8b annually due to the energy crisis, Kabagambe Kaliisa, the energy permanent secretary, told Parliament on Tuesday.
By Mary Karugaba
THE economy loses sh431.8b annually due to the energy crisis, Kabagambe Kaliisa, the energy permanent secretary, told Parliament on Tuesday.
Kaliisa explained to the legislators on the national economy committee that if not quickly handled, over sh17 trillion would be lost in the next four years.
“The power shortage being experienced has tremendously affected the economy. The Government loses about $254m due to power crisis. That is why we are coming up with the energy sector development to finance the thermal power,†he said.
Fred Omach, the finance state minister, said the Government had created an energy fund to mitigate the problem.
He said the Government had allocated sh124b in the next financial year budget to the fund.
The country requires about 105MW of power because the hydro-power generation at the Kiira and Nalubaale dams has increased to 145MW following the rise in Lake Victoria water levels.
The prolonged drought had dwindled the power generation at the stations to 120MW from installed capacity of 380MW.
The Government has since procured 100MW thermal plants to mitigate the impact of load-shedding.
However, thermal generation is thrice expensive as hydropower. Omach said the Government plans to inject sh100b in the energy fund annually. This would be done during the next four years.
Last week, Omach informed MPs that sh35b had already been transferred from the privatisation proceeds into the fund.
“We want all the planned industrial zones to have power. This means we have to facilitate some of them,†he said.
Keith Muhakanizi, the deputy secretary to the Treasury, said the energy plan had already been developed.
“It is the money that is urgently needed,†he said.
According to the Budget framework paper for the 2007-10 finance years, investment in the energy sector would be prioritised.
Other priorities include the development and maintenance of transport infrastructure, science, technology and industrial development, rural development including rehabilitation of northern Uganda and social sector interventions including the Universal Secondary Education.
THE economy loses sh431.8b annually due to the energy crisis, Kabagambe Kaliisa, the energy permanent secretary, told Parliament on Tuesday.
Kaliisa explained to the legislators on the national economy committee that if not quickly handled, over sh17 trillion would be lost in the next four years.
“The power shortage being experienced has tremendously affected the economy. The Government loses about $254m due to power crisis. That is why we are coming up with the energy sector development to finance the thermal power,†he said.
Fred Omach, the finance state minister, said the Government had created an energy fund to mitigate the problem.
He said the Government had allocated sh124b in the next financial year budget to the fund.
The country requires about 105MW of power because the hydro-power generation at the Kiira and Nalubaale dams has increased to 145MW following the rise in Lake Victoria water levels.
The prolonged drought had dwindled the power generation at the stations to 120MW from installed capacity of 380MW.
The Government has since procured 100MW thermal plants to mitigate the impact of load-shedding.
However, thermal generation is thrice expensive as hydropower. Omach said the Government plans to inject sh100b in the energy fund annually. This would be done during the next four years.
Last week, Omach informed MPs that sh35b had already been transferred from the privatisation proceeds into the fund.
“We want all the planned industrial zones to have power. This means we have to facilitate some of them,†he said.
Keith Muhakanizi, the deputy secretary to the Treasury, said the energy plan had already been developed.
“It is the money that is urgently needed,†he said.
According to the Budget framework paper for the 2007-10 finance years, investment in the energy sector would be prioritised.
Other priorities include the development and maintenance of transport infrastructure, science, technology and industrial development, rural development including rehabilitation of northern Uganda and social sector interventions including the Universal Secondary Education.