Electricity review; Contract dilemmas, Umeme and new Power lines dominated 2013

KAMPALA: The two year’ melodrama of protracted legal battles, kickbacks, indecorous procurement processes and intrigue, from State House to the Ministry of Energy, was finally brought to end with a ‘surprise' giveaway of the Karuma contract.

The contract was awarded in June to a Chinese State firm, Sinohydro Corporation Limited, which was yet to sign contract with government at the time of commissioning; in disregard of a report by Inspector General of Government, Justice Irene Mulyagonja recommending a redo of the entire procurement process.

Works on the $1.4b Karuma dam project started early this month and the 600 megawatts (MWs) is expected after 2018-the completion date.

But the contractor was dubiously awarded contract through a Public Private Public Partnership directly by President Museveni, reportedly after signing bilateral agreements between Uganda and the Chinese government, which will finance 85 percent of the project

Hot off the shelf in the days leading to Karuma was Ayago hydroelectric dam which also has an estimated capacity of 600MWs.

The contract to the $1.9 billion dam project located in Nwoya district was also awarded by President Museveni to a Turkish firm without necessarily any procurement process conducted.

According to a statement from State House, a Memorandum of Understanding between Mehmet Nazif Gunal on behalf of the investor Mapa Construction Company and government represented by Energy minister Irene Muloni was signed on April 21.

Little else was said about the deal but it was also revealed the project would be developed in two phases with Ayago North to have a capacity of 350MW, and Ayago South with an expected capacity of 250MW.

“The most important thing in this project should be efficiency”, the President was quoted saying, however no progress has since been reported on the project and unverified reports claim the contract later withdrawn from the Turkish firm.

Buseruka Mini hydro dam which has an installed capacity of 9MW was commissioned in January to boost electricity access in the districts of Hoima and Masindi. Works on $30M dam located on River Wambabya in Buseruka Subcounty-Hoima started in 2008 by Hydromax Ltd.

President Museveni flagged off work on 183MW Isimba Hydro power dam on River Nile in Kayunga District. The Shs1.2 trillion project was awarded to China International Water & Electric Corporation (CWE), which lost out in the Karuma bidding and later petitioned for a review of the process citing corruption and intrigue.

Under the rural electrification programme the President commissioned the Shs5.2 power line in Nakaseke district; Shs 710 million powerline in Fort Portal, and another Shs21 billion electrification project in Mubende district respectively.

However despite the developments, electricity access around the country remained low concentrated in urban areas majorly and only 14 percent are connected to the grid.

An estimated 90 per cent of Ugandans live in rural areas with less than three per cent access.

Statistics from the Rural Electricity Agency (REA), a government body tasked to steer the programme show that by end of 2012 about 7,968 households of the projected 109,000 had been connected.

REA still maintained that more than 6,000 solar connections and 426 grid extension projects have been implemented countrywide-so far to support social and economic projects for rural transformation but access remains thin.

Similarly, Umeme the main distributor and operator of the main grid warned Ugandans about the possible (and imminent) return to load shedding citing insufficiency of electricity capacity generated.

With darkness already biting hard in some places, the warning came against heels of a technical fault in two of the five turbines at Bujagali dam.

The dam produces a reported capacity of 250MW.

The UK firm which supplies 97 percent of the countries power said load shedding estimated to go up to 2018 (if generation does not increase) can only be averted by switching to thermal plants, to supplement current capacity of 516MW against a demand of 490MWs.

The thermal generation plants are; Aggrekko Lugogo (50MW) Namanve (50MW) and Mutundwe (50MW).

Government had switched off thermal plants in 2012 citing the high cost per unit of electricity produced (after subsidies had been scrapped). But towards festive holidays it (government) was propelled to backtrack on the move to guarantee supplementary.

Thermal power costs Shs779.5 a unit compared with Shs268.8 for hydropower.

Industry players however rubbished Umeme’ claims as “nonsensical” and that of the company bosses merely wanted to recoup their investments in some of the thermal plants.

A Parliamentary Ad hoc Committee sanctioned by Speaker Rebecca Kadaga in 2011 to investigate the nationwide electricity crises, notably high electricity tariffs and load shedding, also released  its report recommending “cancellation of Umeme’ contract” citing incompetence.

In its 159 paged report the committee questioned the manner in which the company came into existence and was awarded contract; its monopoly, and concerns over the high electricity tariffs amidst poor service delivery and a faulty billing system.

The Attorney General, Peter Nyombi, however advised against termination of Umeme’ contract citing several unsavory clauses in the contract with government in which premature cancellation of the agreement implies paying Umeme Shs371 billion [buyout amount], payable within 91 days or else attract additional 20 percent per annum money which is unavailable.

Ms Muloni, who then as managing director of Uganda’ electricity distribution arm (UEDCL), oversaw awarding Umeme the contract stressed: “The company is going nowhere.”

Umeme, which in 2012 issued its first IPO and floated up to 622, 378,000 shares which constitutes 38.6% of the company’s issued share capital upon listing with a view of raising at least ShsShs171billion to pay off debts and use the other part of harvests to invest in distribution, also paid its first interim dividends.

The company also raised call to the Capital Markets to raise over $170 million (about Shs438 billion) to finance its investments in the next five years.

Umeme early this month, further, made proposition that end-user tariffs for domestic consumers be increased by 9.95 per cent starting next year. The proposal once approved by the Electricity Regulatory Authority (ERA), the price of electric power used in homes will rise from Shs524.5 to Shs576.69 per unit consumed.

It equally wants tariffs for maize mills and water pumps increased from Shs487.6 to Shs568.48, that for small industries from Shs458.9 to Shs571.24 and for large industries Shs389.63 instead of Shs312.8 per unit consumed.

Ghost students, fraudsters haunt Kyambogo University

KAMPALA: Kyambogo University management has set dates of February 19 and 20 for the 10th graduation ceremony amidst growing revelations of student “mafias” and fraudsters comprising the finalists’ list.

Daily Monitor has learnt management has been shocked by the number of such ghost students who have been unearthed by a Verification Committee instituted last month to, among others, examine student’ fees collections and the number of expected graduates per faculty in the academic year 2010-2013.

University Spokesman, Lawrence Madete, however said yesterday it is still premature to arrive at student’ numbers in the category.

But, “at least the committee has uncovered two things; that there are several students who are not genuine students of Kyambogo but rather fluked and now want degrees, and in another scenario students shared admission numbers with others deliberately to bypass fulfilling their financial obligations.”

He, further, noted the committee is still conducting the fees examination and all students who are confident they paid [in full and were genuinely admitted] are obliged to validate their details or risk missing out on graduation.

A total of 9000 students were supposed to graduate last year but the ceremony was deferred after a staff strike protesting the return of the Vice Chancellor, Prof. Isaiah Ndiege, altered the academic calendar and programmes.

The scam

Management had set fees collection targets of Shs40.5 billion from payments of the finalists but towards the initial graduation dates only Shs19.8 billion was reflected on the accounts.

The monies Shs 20.6 billion was lost in 10 faculties but officials believe it was in the making of the bigger grand fees scam (uncovered last year) peddled by students, some university staff and bank tellers-yet on the loose.

Prof. Ndiege, who had been away on “forced leave” for a year told this newspaper earlier on, “the work of the committee is to leave no stone unturned and establish the problem origin.”

Several students have been faulted and urged to “repay” full fees, but with all bank statements claim they fulfilled their financial obligations and “this would mean double payment.”

An official on conditions of anonymity said: “Many students have full bank statements indicating payments but are not reflected in the university system, a problem management is stuck with.”

The University last year admitted loosing Shs10billion in revenues and at least ShsShs5.5billion in stolen fees for continuing students in the period between management wrangles.

Side bar

The Faculty of  Science and Management which was expected to collect Shs3.5 billion  from 786 students , only Shs1.7 billion is accountable for while  Shs3.2 billion which was expected from Faculty of Engineering  only 1.3 billion was realized .The faculty of Art and Social Sciences fetched only  Shs 5billion against  Shs11.6 billion which had been projected .

Sudan peace talks: Machar’ group want Ugandan Forces to withdraw

KAMPALA: Dr Riek Machar’ negotiating team in the Ethiopian Capital Addis Ababa, have described external military intervention in South Sudan an obstacle to the peace deal and urged Uganda to pull out its forces.

In an interview with Daily Monitor on Sunday ahead of the ongoing concord deliberations, Peace and Conflict resolution scholar, Dr Dhieu Mathok Ding Wol, who also doubles as a member of rebel forces negotiating team, said, “it seems the conflict interest is completely misunderstood by the government in Kampala.”

 “Uganda supported the people of South Sudan in their quest for independence. I believe Museveni’s government and the people of Uganda were not supporting an individual, otherwise their support would have died with Dr John Garang.”

He, further, noted they equally had hopes in the peace deal but urged President Salva Kiir’ government not to handle the talks lightly and that any attempt to use force to regain control of the areas under the rebel forces is detrimental to peace to peace and security in the country.

Ugandan government officials yesterday however rubbished the claims saying the rebels either stick to the peace deal or an iron hand “under the context of IGAD” will be used.

The head of government’ information clearing house-Media Center, Ofwono Opondo, maintained: “Uganda is in Sudan to help evacuate its citizens and protect its boarders from any likely infiltration (by another rebel group) during such a time.”

 “It’s not that Uganda urged those people to start fighting. Our country has a lot of interests in a peaceful South Sudan (like addressing the current refugee crisis) so those statements by Machar’ group are outrageous and a scapegoat from the negotiations.”

The Spokesman of the national army, UPDF, Lt. Col. Paddy Ankunda could not comment on the rebel’ demands saying he was in a meeting, but Mr Opondo emphasised, “Uganda cannot and will not withdraw until peace is realised.”

But Dr Mathok, further noted “the position of President Museveni on the conflict in the Republic of South Sudan is affecting even the peace process mediated by IGAD in Addis Ababa. He is an elder brother whose word is heard by all if only he can take a neutral position.”

Uganda maintains a “sizeable” force in Sudan to protect and evacuate its citizens trapped.

President Museveni on December 30 travelled to Juba where he warned that either Dr Machar embraces the ceasefire suggested by President Kiir or face the wrath of the regional forces.

The Intergovernmental Authority on Development (IGAD) executive secretary, Ambassador Mahboub Maalim, brokering peace, said “negotiations will focus on two agendas; cessation of hostilities and the question of detainees” arrested in the aftermath of the alleged Coup’ on December 15 which kick started the fighting.

No progress was however reported yesterday (Monday).

The fighting which has descended into ethnic clashes between Kiir’ DInka ethnic group and Machar’ ethnic Nuer, has according to the United Nations humanitarian office, killed at least 1,000 people and displaced 200,000 others.

Dr Mathok also explained that ‘what fighting forces are doing is calling for democracy. “If Museveni is agitated by calls for democracy in South Sudan, then he may be right to interfere.”

Side bar

The head of Sudanese’ government negotiation team, Nhial Deng Nhial, said they would “leave no stone unturned in the search for peaceful resolution” but warned it "must be abundantly clear" government has "an obligation to restore peace and security of the country through all means available."

PAY TV firm declines to pay Shs9 billion for fake Decoders

KAMPALA: Digital Pay Television provider, StarTimes has stood ground against compensating customers more than 130,000 customers duped with outdated Digital Video Broadcasting -Terrestrial decoders (DVB-T)

The company sold each DVB-T decoder at Shs70, 000 to customers but were later discovered and announced to be outmoded by the Uganda Communications Commission (UCC) and later prompted a civil suit.

But the company, Daily Monitor, understands objected the out of Court settlement options-of paying customers at least Shs9.1 billion for the fake equipment or providing the required DVB-T2 set top boxes warranted by the regulator, UCC and other International Standards

Star Times publicist, Christine Nagujja, when contacted defended the company’ decision saying, other Pay TV providers (like DSTV) also provided relatively similar obsolete technology (while they were starting) but have never compensated customers or even dragged Court.

“And it’s not that DVB-T decoders do not function. They still do---but it was also simply advancement in the technology,” Ms Nagujja remarked, “Telecom companies are now using 3/4G technology for internet but are people using 1G blocked from doing so?”

She also maintained the Court Case is “simply political”, and aimed at mudslinging the company’ reputation. “Let’ just wait for what Court will decide.”

Two pay television customers subscribing to StarTimes, a Chinese-owned Pay TV operator, Mr Muzamir Kasamba and Mr Mulwani Taminwa, jointly with the Uganda Consumer Protection Awareness Association (UCPAA), sued the company for distribution of out-of-date decoders, rather incompatible to digital technology.

Star Times officials also said, the company stopped importation of the said decoders and noted: “Any one claiming to have bought a DVB-T decoder from our outlets is lying.”

Over 130,000 Star Times pay TV subscribers allege that the firm has continued selling them DVB-T set top boxes— an outdated technology which is yet to be switched off instead of Digital Video Broadcasting – Second Generation Terrestrial (DVB-T2), a modern decoder with a bigger frequency spectrum capable of carrying higher TV content and compatible with digital broadcasting compared to DVB-T.

Mr Richard Omongole, legal representatives of the applicants confirmed Star Times objection to the “settlement options” but said the case is still in Court.

Uganda is among several African countries preparing for digital migration in 2015, but awareness in the country is still lukewarm.

While UCC acquiesced to DVBT2 as the ideal for digital migration, StarTimes had ostensibly been given a licence by the former to sell DVBT1 set top boxes, in cognisance of full implications, which critics said is justification of “UCC’ corruption and Incompetence.”

Side bar

Attempts to get comment from UCC were futile by press time as several officials authorised to comment on the matter could not be reached by phone. 

South Sudan backs UPDF intervention

KAMPALA: Talks to cessation of hostilities in South Sudan yesterday flopped again as President Salva Kiir’ government defended UPDF’ involvemnet saying Uganda [as a big brother] has an obligation to maintain peace in the region.

The South Sudanese ambassador, Samuel Lominsuk, said Uganda’ national army was not officially invited but like US, Britain and Kenya which reined in forces to evacuate and protect its citizens, did so on humanitarian grounds.

“Why is everyone focusing their attention on UPDF? Did the world want the situation to turn into complete genocide (as we saw in Rwanda while everyone was looking on) for any intervention?” he noted, “In Africa what happens in one man’ house must be a concern for all the neighbouring homes.”

His defence came on the heels of mounting heckling from several Members of Parliament and Civil Society Organisations questioning UPDF’ role in the three week’ conflict which according to UN. agencies has claimed over 1,000 lives and displaced over 200,000 people.

Amb. Lominsuk, added “We have a military agreement signed by my government, DRC and Uganda to flash out rebel activities-of Joseph Kony, which prompted UPDF to intervene and defend its country’ boarders.”

“Even though not fully operationalised, Uganda’ intervention was also justified under the Inter Government Authority of Development (IGAD). So I think the condemnations are just nonsense.”

The Parliamentary Defence Committee summoned Defence Minister Crispus Kiyonga expected to appear today to explain Uganda’s military presence in South Sudan without approval.

Internal Affairs minister, Gen Aronda Nyakayirima is also expected to appear separately to give status report about the increasing number of refeugges, which the UNHCR has put at more than 23,546.

Ms Rosemary Namayanja, the Information minister said “UPDF’ deployment is only at the airport and key government strategic installations and they are not involved in war.”

Peace talks fail

The ongoing peace talks in the Ethiopian capital, Addis Ababa, stiffened further, with Dr. Riek Machar’ rebel group demanding for an immediate release of all former cabinet ministers [and other detainees] arrested in the aftermath of the December 15 Coup’-which kick started the bloodletting.

But Amb. Lominsuk, addressing journalists, described Dr. Machar as “man with a history of violence” who has murdered several of his countrymen (for his failed political ambitions) but at this rate cannot be tolerated.

 “There will be no preconditions at all agreed for a ceasefire,” he remarked, “President Kiir’ government has the mandate of the people to protect them and ensure peace and order—at all costs.

He said, three of the 12 ministers were released but, “the remaining 9 were already wanted and have corruption cases to answer. They will go through due legal processes as done in any democratic institution and if found innocent will be released.”

The rebel’ negotiating team had also appealed to Uganda to withdraw its army saying there meddling will worsen the situation.

In summary

The ambassador said the States of Unity and Jonglei, are still under control of rebel forces, which comprise of over 45,000 Child Soldiers which SPLA forces fear to harm if it launched an offensive to reclaim them.

UPDF will not take sides in South Sudan-gov’t

KAMPALA: The government yesterday assured the international community that Uganda’ involvement in South Sudan under the framework of IGAD is to purposely protect its citizens and will not meddle into the politics of the country.

The Prime Minister, Amama Mbabazi, at a meeting with the British High Commissioner, Alison Blackburne and Netherlands ambassador, Alphons Hennekens, said UPDF’ presence in the three week’ conflict averted loss of lives.

"From the humanitarian view we quickly went there on our own but on the second aspect we cannot take unilateral action,” Mbabazi notified the envoys.

He, reminded them that Africa’ youngest nation as ever been bedrock of Islamists [rebels] in previous years leading to independence and there was obligation to forestall such terrorism predicament-like in Somalia.

The fighting-started December 15 after a purpoted Coup’-has since descended into an ethnic conflict between President Salva Kiir’ Dinka group against former Vice President’ Dr. Riek Machar’ Nuer, amist ongoing peace talks in the Ethiopian capital, Addis Ababa.

According to UN. agencies over 1,000 people died so far and more than 200,000 displaced.

On December 30, President Museveni travelled to Juba where he warned that either the rebels embrace the ceasefire suggested by Kiir’ government or face the wrath of the [IGAD] regional forces-and Uganda has since deployed and maintained a sizeable force.

Mr Mbabazi said, Uganda could not unilateral military action because the consequences would be disastrous.

The envoys had called the meeting to discuss Uganda’s representation on the Board of the Democratic Governance Facility (DGF), a multi-donor funding mechanism for democratic institutions and processes in African countries funded by the European Union, UK, and Netherlands.

They assured the Prime Minister of their commitment to fostering active dialogue on the DGF’s objectives.

The South Sudanese government on Wednesday defended the deployment of UPDF in Juba, saying Uganda [as a big brother] had an obligation to maintain peace in the region-and stop the conflict from degenerating into genocide.

The country’ ambassador, to Uganda, Samuel Lominsuk, said: “In Africa, what happens in one man’ house must be a concern for all the neighbouring homes.”

The UN agency for refugees, UNHCR says has received more than 23,546, currently hosted in the West Nile districts of Adjumani, Arua, AND Yumbe.

Side bar

Mr Mbabazi also assured the envoys that the recently passed Anti-Homosexuality Bill would be first discussed by the NRM caucus before being receiving Presidential assent.

Sudanese Dinka, Nuer refugee groups clash in camps

Tension between the South Sudanese refugee ethnic Dinkas and Nuer is brewing up in camps in Northern Uganda and has prompted authorities to split and relocate the two groups accordingly.

West Nile region Police spokesperson, Josephine Angucia, said that, ethnic clashes between the two groups have become rampant and worrying-since some refugees fleeing the ranging conflict in South Sudan carry firearms, caches of bullets and army uniforms which can easily turn into bloodletting.

“They have shifted their internal conflicts to the camps, but we are trying all our best to diffuse such incidences,” she said, but, “Aware of the situation, we are now cautioning them straightway at the point of receipt.”

Another official not authorised to comment about the matter because they are coordinating the refugees, said such tension was building and worse in camps like Eregu in Adjumani, the first gathering point and several assault cases have been reported.

Ms Angucia, however pegged the tribal build-ups to trauma and anxiety the refugees have been through both at home and in camps, but maintained Police and the humanitarian agencies are averting any possibility of “escalation” by splitting them.

Similarly, authorities in Adjumani Saturday said refugees totaling to 29,515 rioted over the delay by agencies to relocate them to more spacious settlements but the situation was contained.

Fighting in South Sudan which pitted President Salva Kiir’ ethnic Dinka against former Vice President’ Nuer group started on December 15 after a purported Coup’ and has according to UN. agencies claimed over 1,000 lives and displaced more than 200,000 people.

Meanwhile, the United Nations Central Emergency Response Fund [CERF] has released a $15 million (Shs37 billion) funding package to expedite relief efforts for the Sudanese refugee operations.

The UN Under-Secretary-General for Humanitarian Affairs, Valerie Amos, announced last week in New York that ‘aid agencies need to quickly provide assistance to the thousands of people caught up in violence, and funding is crucial.’

However, an official at the CERF secretariat at UN Office for the Coordination of Humanitarian Affairs, Mr Tomas de Mul, in a telephone interview from Washington, said the money released first was to purposely take care of operations for agencies on ground in South Sudan and not necessarily agencies in Uganda.

Side bar

The Uganda Red Cross head of communications, Catherine Makumbi, said current refugees numbers are believed to be 46,371.