While there are questions on whether there is a need to import electricity from Kenya, some suggest the bigger questions include whether Isimba Dam was insured. Why should the government pay to repair the Dam after the floods if it was really insured? What about the threats the Dam poses to nearby communities?
Uganda government purchased power from Jacobsen at 48.1 billion Shillings in 2019. This figure is expected to drop to 42 billion Shillings in 2020, according to ERA which adds that the decrease in power purchase cost is on the account of reduced generation of thermal capacity due to the new renewable commissioned.
Muwanga says there is no material uncertainty which may cast doubt on the companys ability to continue as a going concern. The Auditor General, however, points out a number of critical occurrences in the power generation sub-sector which require urgent attention.
The Indian company is under agreement with the Ministry of Energy to offer supervisory services for the construction of Karuma and Isimba power dams. Under its Terms of Reference, the company is tasked to supervise and approve construction, assembly, erection, installation, green-testing, and any works undertaken by Sinohydro Corporation Limited, the projects lead contractor.
The electricity generation company—UEGCL—has said it fears that the power generated from Nyagak 3 hydropower project in West Nile would go to waste because the region has a small consumer base.
