Recently, the Cabinet has approved reforming the Energy, Water and Sanitary Authority (EWSA), whereby the institution will be split into two companies that will manage energy and resources separately from each other.
One company will be called Water and Sanitary Company and will be charged with managing water resources and distribution both in the urban and rural areas, and the second one will be called Energy Holding Company, and will manage energy development and electricity distribution.
Speaking to journalists during a press conference, the Minister of Infrastructure, Prof. Silas Lwakabamba, said that the reforms are meant to promote efficiency and transparency in the distribution of water and electricity around the country.
"There was no clear proper planning, combining together water and energy management made EWSA without a clear focus, so it's clear that EWSA needed reform and this will enable the two companies to work in a more organized and transparent manner" Lwakabamba said.
He said that there was a lot of cross subsidization, that electricity was subsidizing water, which forced the government to subsidize the whole of EWSA for it to survive.
The Minister noted that the government thought that EWSA needed to plan properly by developing a low cost energy development strategy of up to 20 years.
"The management of EWSA was mainly in development and planning but it was not focused and we do believe that under the new arrangement, the two companies will offer better services both in terms of water and energy development and distribution in the country," Lwakabamba said.
The Director General of EWSA, Ntare Karitanyi, welcomed the reform, saying it will highly contribute to the government's electricity and water distribution targets under Economic Development and Poverty Reduction Strategy (EDPRS) 2.
According to Lwakabamba, the new companies will immediately take over EWSA responsibilities and operations.