Liberalization plans stalled
Uganda`s plans to liberalize its electricity sector suffered a setback recently when the parliament returned the proposed bill to the committee stage. The bill would pave the way for private sector power projects in the country and puts on hold the government`s negotiations with investors over two new hydropower plants.
The bill removes the regulatory role of the state-owned Uganda Electricity Board. The government is reportedly frustrated by the move given the country`s rising power demand.
The government is negotiating the financing of two hydro plants worth $1bn with a combined capacity of 700 MW. US firm AES is planning a 250 MW hydropower plant on the Nile, while Egypt`s Arab Contractors International is involved in a, 450 MW dam.