State minister for investment Evelyn Anite has revealed that state-owned power generator, Uganda Electricity Generation Company Ltd (UEGCL) is among the few state enterprises that are making profits for Ugandans.
This comes following the announcement by Electricity Regulatory Authority that government will compensate the UEGCL for unused power generated by the Karuma hydropower plant. UEGCL says they are on track for the completion of Isimba and Karuma dams — two of the country’s most ambitious energy projects valued at Shs7.1 trillion and expected to double the power output.
The company headed by Eng. Eng. Dr. Harrison Mutikanga was listed in a document presented by the ministry of finance to the finance committee of parliament on Monday evening alongside National Water and Sewerage Corporation (NWSC), National Housing and Construction Company Ltd (NHCC), Uganda Posts Ltd, Nile Hotel Ltd (Serena hotel), Uganda Wildlife Education Center (UWEC), NEC Luwero Industries, NEC Construction Works and Engineering Ltd.
However, even after being identified as profitable, the finance ministry document indicates that a number of these have been identified as having high debt equity ratios and that retaining and capitalizing their profits would help improve their debt equity rations.
Uganda Broadcasting Corporation (UBC), Uganda National Cultural Center, Uganda Electricity Distribution Company Ltd and Mandela National Stadium were named among 12 state enterprises that are no longer profitable.
The others are; Uganda Air Cargo, Nakivubo War Memorial Stadium, Uganda Electricity Transmission Company Ltd (UETCL), Uganda Railways Corporation (URC), Uganda Energy Credit and Capitalization Company Ltd, and National Enterprise Corporation (NEC) Tractor Hire Scheme, NEC Tractor project and NEC Farm Katonga. The NEC enterprises are run by Uganda People’s Defence Forces (UPDF).