Kampala, Uganda — The Uganda Electricity Distribution Company Limited (UEDCL) is gearing up for an increase in operations and procurement, projecting a significant rise in annual spending from the current average of Shs50 billion.
This increase is anticipated as UEDCL prepares to assume control of the distribution territories currently managed by Umeme Limited next year.
UEDCL Managing Director, Paul Mwesigwa, said during the supplier conference held in Kampala on Feb.7 that the company is ready to handle the increased workload.
"Our staff, the board, and management are fully prepared for the responsibilities that lie ahead," he stated.
Currently, UEDCL's procurement list includes electricity poles, transformers, office equipment, cables, and various services.
Mwesigwa said the company is committed to prioritizing Ugandan companies for procurement, in alignment with the government-backed Buy Uganda Build Uganda policy.
The suppliers' conference aimed to inform suppliers about upcoming opportunities and encourage them to prepare for future collaborations with UEDCL.
The event attracted 300 participants, showcasing a mix of government and private sector entities, including the Uganda Revenue Authority, Public Procurement and Disposal of Public Assets Authority (PPDA), dfcu Bank, and Stanbic Bank. These entities presented their services and discussed potential opportunities within UEDCL's expanding electricity distribution business.
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Stanbic Bank emphasized its capacity to support UEDCL's needs, citing over Shs2.5 trillion in customer loans and advances. dfcu Bank, meanwhile, outlined its offerings, including unsecured contract finance and invoice discounting, aiming to facilitate the procurement process for suppliers.
The Minister of Energy and Mineral Development, Ruth Nankabirwa, lauded UEDCL for fostering transparency and partnership in the sector.
She underscored the critical role of electricity in the country's industrialization plan and the National Development Plan III. Nankabirwa also mentioned the government's commitment to a smooth transition from Umeme to UEDCL by 2025, in line with the national vision for electricity distribution.
This development comes at a time when Uganda is working to address capacity gaps in its transmission and distribution network, despite an increase in electricity generation. The government anticipates surpassing 1,800MW of electricity generation by mid-2024, necessitating substantial investment in the distribution network to meet the growing demand.
UEDCL's readiness to take on this challenge was affirmed by Nankabirwa, who noted the company's critical role in addressing the distribution sector's needs.
