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Museveni Directive on Umeme Contract: Umeme in Talks with Government to Reverse Order, Extend Contract Beyond 2025

Umeme Opens Up on Museveni Directive not to Renew Contract after 2025

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In 2005, Umeme  and government of Uganda signed a 20-year concession.

But midway, President Museveni says he is disgruntled with Umeme’s work.

Museveni wrote to the energy minister Irene Muloni on March 12 explaining why Umeme’s contract does not deserve his blessing, again.

There should be no question on renewing the Umeme Concession, wrote Museveni.

“This concession was, apparently, messed up by certain elements in your ministry,” wrote Museveni.

“It is that messing up that is responsible for the high tariffs that Ugandans are still paying for electricity.”

Museveni further asks: “Why do consumers have to pay for both the mysterious investments and the mysterious loses that should have disappeared long ago?”

He has therefore directed that “a cheaper way of modernizing and expanding the transmission and distribution lines” be looked into.

Museveni also suspects Umeme is telling lies about their operational cost and loss figures.

The president wonders why Umeme still makes a loss of 17 per cent, even after injecting $500m.

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In a statement, Umeme said it was still early to comment on Museveni’s directive since the contract “is ongoing”.

Umeme adds that it is in talks with government to renew its contract.

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