Uganda to pay Umeme $225 mln by end of concession

Uganda will pay about $225 million to electricity company Umeme Limited to allow the utility to recoup its investments in the national grid after its concession ends in March 2025, Reuters cited an official from Energy Ministry on Thursday.

The government also plans to contract a private company for a joint venture with the state-owned Uganda Electricity Distribution Company Limited (UEDCL) to operate the grid after Umeme’s concession ends, the official said.

Umeme Limited is listed on the Uganda Securities Exchange and cross listed on the Nairobi Securities Exchange. The Company operates a government-owned 20-year electricity distribution concession since March 2005.