At the moment, you are subsidising part of the price of the electricity that independent power producers are putting out to the market. What is the landscape of electricity pricing in the country?

As a short-term measure, the government’s attitude has been to mitigate so that we could sustain the availability of power in enough quantity. But, as I’ve mentioned, the government has now put in place generation plants that are nearing almost 80 per cent conclusion and will more than double the generation capacity.

Uganda is taking critical steps in terms of its power generation, distribution and transmission. How would you describe what is happening now?

We are going through a stage of tremendous growth and development. The main focus area now is the implementation of the many projects that the government has financed to be able to distribute the power of the generation plants that are under construction. We are also doing a lot of construction work to interconnect with neighbouring countries through 220kV transmission lines in order for us to enhance the regional watt rate. In the next two or three years the generation capacity of Uganda will more than double. The current construction work involves linked hydropower plants, which are scattered all over the country. Other forms of technology include generation from sugar cane residue called bagasse. We’ve also got two 20 megawatt solar plants commissioned and two more are under construction. As a company that is 100 per cent owned by the government of Uganda, we want to ensure that, first and foremost, we are able to distribute this power from where the generation is taking place and integrate it with the existing grid and, second, that we are able to interconnect with neighbouring countries so that in the case they require part of our power, we can easily trade with them and vice versa. In other words, we are trying to integrate the east African grid so we can better enhance the regional power rate. UETCL is important within all of this because we are now a company sandwiched between generation and distribution of electricity. We act as a highway in which you can make all this happen.

Regional interconnectivity is likely to become very important in the coming years. How exactly does that work? Does Uganda already export and import electricity?

First and foremost, Uganda is endowed with hydro. We have a lot of water bodies and in the region we have the best rains. Currently, we’re trading with Kenya and have been since the 1960s. But now we are creating a second line to strengthen that and construction is more than 60 per cent complete. We’re also exporting power to N Northern Tanzania – 15 megawatts – and we’re interchanging power between Uganda and Rwanda on 33kV lines. To enhance that, we’re now constructing a new 220KV transmission line to Rwanda, which is 90 per cent complete. We need to enhance trade and Rwandans want to buy more power from the region. As we are near, we are in a better position to provide the additional energy they require. We have also concluded a memorandum of understanding with the Democratic Republic of Congo (DRC). The studies are complete and we are now looking for financing to construct and interconnect the southwestern part of DRC. South Sudan is also coming, and a memorandum of understanding was signed for us to interconnect with it via a 400kV line. When all this is complete it will ensure that we benefit as a region from cheaper generation that is mostly optimum for each country. As an engineer, an electron is an electron, but we want that electron, wherever it comes from, to be affordable for the economic transformation of the country.

How do you build the confidence of potential investors to persuade them that they need to come and participate in the sector?

Uganda has the most liberal investment regime in Africa and perhaps even the world. Our electricity regulator has received honours for being able to attract private capital in generation especially, but also in distribution. When we double the capacity of generation you will see that we have sufficient power to attract the big industries. Once the investors know there is sufficient and reliable power, they will be able to come and invest in big factories.

One thing is having power generation and another is taking it out to rural areas and all over the country. Is there a gap between the new generation coming in and the way you are able to distribute it?

Currently, about 25 per cent of the population has access to modern energy. I think the government needs to do more to ensure that investments are made downstream to ensure that various parts of the country enjoy the new energy being generated. This will also help manage the environment because a lot of deforestation is taking place because of firewood collection.

Can you give me an example of how foreign companies engage with UETCL?

We are strategic as a government company but we are also a limited company. The shareholder is the Ministry of Finance and we are a designated single buyer. That means we are the only company that can negotiate contracts with new players who want to invest in the new generation. We sign power purchase agreements for 20 years minimum and we manage those contracts for their duration. In the last two or three years we have signed over 40 contracts with various independent players – a marked increase from years past because of the good environment. For those who want to invest in new generation, we are the point of contact.

What is the company’s strategy to continue to enhance its performance?

We have a running strategic plan that is updated every five years but is reviewed every two years. The current strategic plan is ending this year and we are in the process of reviewing it. By and large, the strategies hinge on five pillars: asset management – maintaining existing assets; achieving accelerated grid development – that’s why a lot of construction has taken place; the financial sustainability of the company; human resources; and all of that can be assisted by IT and internal systems. It all hinges on sustainable regional power development.

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As CEO of UETCL, is there a project or a particular vision that particularly excites you?

What excites me is the vision to ensure that my shareholders – the government – are satisfied with the direction the country is taking, and we play our role in helping Uganda reach middle-income status in the next few years. That cannot happen unless electricity is continuously improved because electricity is a key driver for sustainable economic growth.

Do you have any last messages to would-be British investors looking at this sector?

I would encourage the British to come and invest more in generation because we still have a lot of untapped resources. In geothermal we still have significant potential – 500 megawatts of geothermal is lying unutilised in western Uganda. There is also still scope to invest in the Nile, as we have only tapped 2 per cent of its potential. I would encourage them to come and invest. The target is that by 2030 everybody in this country should have access to affordable and modern electricity.