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UEDCL’s Looming Disaster: Uganda’s Billion-Dollar Nightmare

by Writer
January 6, 2025
in Opinions, Politics, Uganda
UEDCL’s track record is a disgrace, its ambitions a farce, and its future a disaster waiting to happen.  Image maybe subject to copyright.

UEDCL’s track record is a disgrace, its ambitions a farce, and its future a disaster waiting to happen. Image maybe subject to copyright.

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The Ministry of Energy’s decision to replace Umeme with UEDCL reeks of governmental ineptitude and reckless ambition. What we are witnessing is not the reclamation of power distribution but the birth of another parasitic institution that will leech off Ugandan taxpayers while delivering substandard services. UEDCL’s incompetence, paired with a ballooning national debt, sets the stage for what could be Uganda’s most catastrophic misstep in energy policy.

The government’s delusion that UEDCL is ready to take over electricity distribution is laughable at best and criminal at worst. For years, UEDCL has failed to maintain its smaller concessions, and now we are to believe they can handle Umeme’s expansive network. The numbers don’t lie: 36.7% of distribution transformers are obsolete, and a tenth of utility poles are ready to collapse. If these basic failures are any indication, UEDCL’s promise of a brighter future is nothing but smoke and mirrors.

To make matters worse, the financial plan is a ticking time bomb. UEDCL is begging for $1 billion, a sum that will be sourced through inflated power tariffs and crippling loans. This is the same government already sinking in a $25.6 billion debt quagmire, with the electricity sector eating up a staggering 90% of borrowed funds. The absurdity of piling on more debt to fund a clearly inept institution is beyond comprehension.

Then there’s the contentious buyout amount for Umeme. The government has promised $225 million, but Umeme claims it’s owed $240 million, plus an unresolved $145 million in investments. The disparity in figures highlights nothing but incompetence from all parties involved. If this isn’t resolved before March 2025, Ugandans could be plunged into darkness as UEDCL stands paralyzed, unable to take over operations. The looming legal battles with Umeme will only add salt to the wound, draining resources that could have been used to fix Uganda’s crumbling infrastructure.

The decision to oust Umeme without a viable alternative reeks of a power-hungry government trying to reclaim control over the energy sector. It’s not about improving services; it’s about consolidating power in the hands of corrupt officials who will exploit the industry for personal gain. Ruth Nankabirwa’s assurances that the government has “set aside a budget” for UEDCL are hollow words meant to pacify a public growing increasingly wary of government lies.

UEDCL’s track record is a disgrace, its ambitions a farce, and its future a disaster waiting to happen. This is not a move towards self-reliance; it’s a descent into chaos. The government’s stubborn insistence on sidelining Umeme without adequate preparation is a slap in the face of every Ugandan who depends on reliable electricity. What awaits us is a dystopian nightmare of frequent blackouts, inflated tariffs, and deteriorating infrastructure—all courtesy of a government that has mastered the art of failing its people.

Uganda deserves better than this sham of a handover. UEDCL’s takeover is not a step forward but a catastrophic leap into an abyss of incompetence, corruption, and ruin.

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