Eskom marks 10 years in Uganda

ESKOM Uganda Ltd (EUL) was incorporated on November 22, 2002, and was awarded a concession to operate and maintain Nalubaale and Kiira Hydro Power stations in Jinja for 20 years. EUL took over operations and maintenance of the complex from Uganda Electricity Generation Company Ltd on April 1, 2003. Ronald Kalyango talked to Nokwanda Mngeni, Eskom’s CEO about their 10th anniversary. Below are the excerpts.

QUESTION: How much electricity do you generate from the two dams?
ANSWER: Eskom is a hydro power electricity generating company in Uganda and the current average production is 158megawatt hours on average. You will recall that this used to be 138megawatt hours but with the high lake levels it has increased. At peak we dispatch 230megawatts, with the lowest at 115megawatts at night.

It is important to note that Eskom’sprimary role is to generate electricity that is in turn sold to Uganda Electricity Transmission Company Limited (UETCL) the authorized single buyer. UETCL then sells the electricity to Umeme for distribution to the local consumer. In as much as Eskom Uganda Limited (EUL) is a subsidiary company of Eskom Enterprises (Proprietary) Limited, EUL isan independently run company and operates in Uganda.

What achievements have you registered in the last 10 years?
We have continued to abide by our contractual commitments, plant availability, staff development and safety performance for the last 10 years.

What does the future hold?
The same excellence you have been accustomed to: plant availability, safety, contractual compliance, staff development among others.

Why would I not have power at my home or business?
A blackout from one of the generators or coming from outside Uganda that cannot be mitigated within. The full system is then lost. When there is a transmission or distribution maintenance programme we intend to switch off our machines but also for safety reasons, certain areas might be load shaded when there is no enough supply to meet demand. As a result, power is then rationed. This is true load shedding.

How much has Eskom Uganda invested so far in the generation of electricity at Nalubaale and Kiira dams respectively to date?
Since commencement of operations, we have injected a total of $12.7m worth of investments into Nalubaale and Kiira hydro plants.

The majority of this funding has been largely raised through its retained earnings with minimal parental loan facility support. Current investment obligations over the remaining 10 year concession period amounts to over $30m of which approximately 70% shall be financed from internally generated finance without parental support. One of Eskom’s major costs are derived from the aging equipment at the plants.

There are active cracks in the concrete and support structures due to the age of the plant caused by alkali aggregate reactions and alkali-silica reactions and these have to be managed in order to ensure continued production from the facilities.

How have you managed to maintain zero accident and injury rates?
Policies and procedures, one of which is our Safety, Health, Environment and Quality (SHEQ) policy. Key amongst the policy statements is that no urgency of work warrants putting any of our employees in danger.


 This, the employees are sensitised on a regular basis. Inessence it means they can say no to dangerous work without fear of being fired.

All leaders, all the way to supervisors are required to carry out observations in the plant on a regular basis. This is to engage employees or contractors in the execution of their work reinforce good behaviour and engage those who are not acting safely. We maintain the philosophy that my safety alone is not enough, I also need to look out for my brother’s safety and each meeting starts with prayer and a ‘SHEQ’ talk. This sensitises everyone to safety issues.

How many engineers have you recruited so far?
We have trained a number of young people including 21 engineers, five accountants, three procurement officers, three human resources practitioners, two communications officers, two information technology officers. We also trained 10 technicians and 10 operators.

What are some of the corporate social responsibilities that your organisation has engaged in over the years?
We have participated in a number of causes, notable of which are: donation of Maama kits to mothers in the Jinja Children’s hospital, donation of clothes and money to both Buduuda and Bulambuli districts and building the Gulu war affected training centre. We have also participated in the MTN and Hared annual marathons and have been one of the funders of the source of the Nile and Eskom Open since 2009 to date

Any possibility of investing in other areas outside Nalubaale and Kiira power dams?
As we speak we are looking for clearly laid out opportunities that can provide insight and business cases which will inform whether we participate in other ventures or not.

What challenges have you encountered in the last ten years?
The shallow supplier market, the shortage of skills as well as unreliable suppliers, what they promise is not what they deliver. Water permit that restricts how much we can dispatch is also another challenge.

What will happen after the expiry of your contract?
Let us take it one step at a time. First finish the ten years with its obligations. Five years towards the end of our concession, then we shall consider what to do next.

Bujagali Dam on the River Nile in Jinja was launched last year. Together with Nalubaale and Kiira, the dams are operated and maintained by Eskom Uganda Ltd

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Eskom to invest$30m in the next 10 years
By Ronald Kalyango
Eskom Uganda Ltd, plans to invest a further $30m in its projects in Uganda over the next 10 years, as it seeks to maintain reasonable generation capacity, the company’s managing director, Nokwanda Mngeni has said. “Since commencement of operations, we have injected a total of $12.7m worth of investments into Nalubaale and Kiira hydro plants,” she explained during a recent interview. “

Majority of this funding has been largely raised through our retained earnings with minimal parental loan facility support,” she adds. The South African firm, the main hydro power generating company in Uganda, was awarded a concession to operate and maintain Nalubaale and Kiira Hydro Power stations in Jinja for 20 years replacing Uganda Electricity Generation Company Ltd (UEGCL) in April 2003.

Today as they celebrate their 10th anniversary, Mngeni says they have successfully refurbished the hydro electric power generation dams, in Jinja district. “When we took over the management of the dams 10 years ago, reliability of the system was poor,” recalls Mngeni.


Today after rigorous refurbishment of the power plant at the Nalubaale formerly Owen Falls and Kiira dams near Njeru town on the western bank of River Nile, Eskom sources indicate a 94% perfect system. Mngeni says their main task is to operate and maintain the power-producing station as mandated in their contractual agreement with government.

“By the time we took over the venture in 2003 even just lighting during thunderstorms could switch off power due to an archaic switchboard that was being used by then. Currently a more reliable one has been put in place,” says Mngeni.

She attributes the high reliability ratio to the fact that the contract dictates punitive measures if there is no supply of electricity. Mngeni disclosed that safety conditions have greatly improved over the years after setting up checks to safeguard machines and workers.
“If we continue abiding by all cardinal rules and safety procedures, EUL will, in a few months, achieve three years without a lost time injury at our power plants,” she says.

“At both facilities, we keep daily track of lost time injury and we’ve to date made 817 days without registering any injury, an achievement that is largely credited to our zero harm philosophy at the work place,” added Mngeni.

Eskom is also compliant with the modern trend of having social corporate responsibility, a programme geared at giving back to the community around it. Some of the achievements in the corporate social responsibility sector include offering assistance to Jinja Hospital Children’s ward and sponsorship of several sports events over the years. The children’s ward received energy saver bulbs and other assorted items.

Eskom has successfully refurbished the hydro electric power plants in Jinja

Two years ago, Eskom also sponsored the source of the Nile golf tournament. Eskom through its environmental protection drive was involved in the planting of about 200 eucalyptus trees in both Njeru and Jinja neighborhood.

Eskom also provided Njeru Town council with over 160 trees that were planted in June last year as part of a local a forestation drive. Mngeni believes that government has confidence in Eskom adding that the South African firm to date also manages Bujagali dam following its commissioning last year.

“Due to the refurbishment and restoration project we only registered two blackouts in 2008. The first one was rectified within two hours while the second only lasted two minutes,” she narrated. However, she noted that all this has not been achieved without significant challenges.

Eskom is not generating at maximum capacity due to Lake Victoria water use restrictions. Mngeni says the use of water in power generation is not the sole factor that affects the water level of the lake. She believes the future of Uganda electricity supply lies in hydro-electric power especially after construction of all the proposed new dams.

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