Eskom, a South African energy company, gave back two hydropower units to the government of Uganda after Kampala officials decided not to renew their licence, according to Uganda’s energy minister.
The Ugandan government declared last year that it would operate the facilities as part of measures to lower electricity prices for consumers and would not renew Eskom’s licence when it expired this month.
Part of those plans, according to the government, was to reduce private capital in the sector.
“We also strongly believe that Eskom has built adequate local capacity that will be able to continue the proper operations and maintenance of the complex,” Energy Minister Ruth Ssentamu Nankabirwa said while taking over the plants from Eskom.
In a speech delivered during Eskom’s transfer, Nankabirwa declared that the plants will henceforth be controlled by the government-owned Uganda Electricity Generating Company Limited (UEGCL).
She said an examination was being done by the government to see if Eskom was due any compensation for investments that were not recouped.
“Government of Uganda is ready to fulfil the outstanding obligations that will arise out of this audit
Eskom had been operating the two facilities at the River Nile’s source in Jinja, roughly 90 kilometres (56 miles) east of the country’s capital Kampala, under a 20-year concession agreement signed in 2002.
The aggregate installed generating capacity of the two facilities is 380 megawatts.