Business

Uncertainty Grips Power Transmission Projects

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viagra 100mg http://channelingerik.com/wp-includes/class-wp-image-editor-imagick.php geneva;”>The revelations come at a time when demand for electricity is growing at an annual rate of 10 percent and is expected to soon outstrip the current total generation capacity.


UETCL Chief Executive Officer, Mr Erias Kiyemba, told Chimpreports on Thursday afternoon that “something needs to be done to facilitate easy access of way leaves.”


“Do you know what you go through to get way leaves? It is a long process because of land disputes, local authorities and so many other encumbrances on land acquisition are slowing down our plans,” said Kiyemba.


He was responding to the Auditor General John Muwanga’s statutory report for the year ending June 30, saying transmission line projects have now become difficult to implement in a timely manner as a result of challenges in obtaining the way leaves.


Muwanga added: “They instead get to evacuate power the long way, circumventing the unmanageable land owners.”


UETCL undertakes huge investments on the grid of transmission lines required for the evacuation of power from the large hydropower projects.


The Company operates under policy guidance of the Ministry of Energy and Mineral Development.


A public limited liability Company owned by the Ministry of Finance, Planning and Economic Development, UETCL is one of the three successor companies created as a result of the unbundling of Uganda Electricity Board (UEB).


It has the operational mandate that is divided into the Single buyer business and Transmission system operator.


It therefore undertakes bulk power purchases and sales, import and export of energy, operation of the High Voltage Transmission Grid and plays the national system operator role.


CONSEQUENCES

The increase in the number of land wrangles and bureaucratic nature of acquiring land is likely to cost the country its NDP target which is to achieve access to electricity for all by 2035.


Studies like the Global Competitiveness Index report of 2012 and the Business Climate Index indicate that Uganda’s competitiveness in high cost of electricity is one of the most pressing challenges they face in doing business as constraints in energy continue to act as a disincentive to investment as it increases the cost of doing business.


Presenting her budget for the financial year 2013/14, Finance Minister, Maria Kiwanuka said affordable electricity is vital for economic growth through facilitating value addition and industrialization, environmental preservation and improving the welfare of the general population.


“Accordingly, increasing access to adequate and affordable Energy remains top on Government Uganda’s transformation agenda,” said Kiwanuka.


In the electricity sub-sector, the budget strategy for the financial year, 2013/14, will continue to pursue the ongoing interventions aimed at increasing energy generation, supply and access in the country specifically, construction of Karuma Hydropower Project (600MW) and Isimba hydro power project (100MW) will commence, the feasibility study


for Ayago (North and South) will be undertaken and 1 renewable energy project will be commissioned.


At least 180 schemes under the Rural Electrification Programme are expected to be completed.


Government intends to increase Uganda’s power generation capacity to reach 780MW-820 MW from the current 280-330 MW, increase Rural Electrification to 10 percent, and promote energy efficiency programmes and renewable energy sources nationwide.


Kiwanuka said the government’s medium term objective is to meet the energy needs of Uganda’s population for social and economic development in an environmentally sustainable manner.


As a result of implementing the rural electrification programme, access to electricity has increased from only 1 percent to 6 percent with the national coverage rising to 12 percent.

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