Uganda’s parliament has authorized a $190 million government loan from Stanbic Bank to compensate electricity distributor Umeme Ltd for unrecovered infrastructure investments as its 20-year concession nears expiration.
Energy Minister Ruth Nankabirwa confirmed the decision on Thursday via social media, stating: “Parliament has approved our request as Government of Uganda to borrow $190 million from Stanbic Bank for the buyout of Umeme.”
Umeme, listed on the stock exchanges in Uganda and Kenya, has held exclusive electricity distribution rights since 2005. However, the government previously announced it would not renew the concession, which expires at the end of March.
In line with the concession agreement, the government is obligated to repay the company for capital investments in the national grid that have not yet been recovered.
