Umeme to pay government sh30b in annual lease fees
Jan 20, 2007
FOLLOWING the conclusion of negotiations with the Government, power distributor, Umeme Ltd, will continue paying an annual $16.28m (about sh29.4b) lease fee for the next 20 years.
By Ibrahim Kasita
FOLLOWING the conclusion of negotiations with the Government, power distributor, Umeme Ltd, will continue paying an annual $16.28m (about sh29.4b) lease fee for the next 20 years.
The fee remains unchanged from what Umeme has been paying the Government during a 20-month interim period.
Umeme committed to the full 20-year distribution concession in December.
Under the agreement, Umeme will pay about $1.35m a month to Uganda Electricity Distribution Company Ltd (UEDCL).
The UEDCL owns the electricity networks, buildings, vehicles, power stations and transformers.
Umeme is a joint venture between Globeleq, a CDC company of the UK and South Africa’s energy giant, Eskom.
“Umeme pays UEDCL monthly lease fee of about $1.15m exclusive of VAT. This totals to about $13.8m per annum, exclusive of VAT or $16.28m per annum, VAT inclusive, †UEDCL’s managing director, Irene Muloni, explained.
She asserted that the change between now and the initial period was negligible.
“Our lease fees are approximately $15m per annum which we pay as per the lease agreement,†Umeme’s corporate communication manager, Robert Kisubi said.
He elucidated that since Umeme’s inception on March 1, 2005, at least 30, 000 new customers had been connected.
Kisubi added that about sh28b had been spent on operations and maintenance while another sh28b was spent on capital investments.
“Our programme over the next five years amounts to sh180b for capital alone,†he said.
He commented that the distribution licence Umeme possess does limit them to specific areas.
“The energy ministry and rural electrification agency are responsible for the connection of new customers who do not fall under the Umeme licence.
“We have connected all customers
within our licence area that apply and pay for connections to the system.
“This is in accordance with our licence and concession agreement,†he explained.
Kisubi explained that connections outside Umeme’s licensed area are connected after request from the energy ministry and regulatory adjustments to the legal operational area through Electricity Regulatory Authority.
UEDCL’s major concern is to collect adequate monthly revenues and strengthen the national network distribution.
FOLLOWING the conclusion of negotiations with the Government, power distributor, Umeme Ltd, will continue paying an annual $16.28m (about sh29.4b) lease fee for the next 20 years.
The fee remains unchanged from what Umeme has been paying the Government during a 20-month interim period.
Umeme committed to the full 20-year distribution concession in December.
Under the agreement, Umeme will pay about $1.35m a month to Uganda Electricity Distribution Company Ltd (UEDCL).
The UEDCL owns the electricity networks, buildings, vehicles, power stations and transformers.
Umeme is a joint venture between Globeleq, a CDC company of the UK and South Africa’s energy giant, Eskom.
“Umeme pays UEDCL monthly lease fee of about $1.15m exclusive of VAT. This totals to about $13.8m per annum, exclusive of VAT or $16.28m per annum, VAT inclusive, †UEDCL’s managing director, Irene Muloni, explained.
She asserted that the change between now and the initial period was negligible.
“Our lease fees are approximately $15m per annum which we pay as per the lease agreement,†Umeme’s corporate communication manager, Robert Kisubi said.
He elucidated that since Umeme’s inception on March 1, 2005, at least 30, 000 new customers had been connected.
Kisubi added that about sh28b had been spent on operations and maintenance while another sh28b was spent on capital investments.
“Our programme over the next five years amounts to sh180b for capital alone,†he said.
He commented that the distribution licence Umeme possess does limit them to specific areas.
“The energy ministry and rural electrification agency are responsible for the connection of new customers who do not fall under the Umeme licence.
“We have connected all customers
within our licence area that apply and pay for connections to the system.
“This is in accordance with our licence and concession agreement,†he explained.
Kisubi explained that connections outside Umeme’s licensed area are connected after request from the energy ministry and regulatory adjustments to the legal operational area through Electricity Regulatory Authority.
UEDCL’s major concern is to collect adequate monthly revenues and strengthen the national network distribution.