UETCLUganda Electricity Transmission Company Ltd.
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205) It also found that the shift from a maximum capacity charge (which was used in the AES Nile Power-UEB agreement) to a cost-base formula (used in the Bujagali Energy Limited-UETCL agreement) significantly shifted the economic risks away from Bujagali Energy Limited and its lenders to UETCL and its guarantors.
The Panel observes that the high allocation of risk to the UETCL, the power purchaser, and eventually the GoU [Government of Uganda] increases the possibility that the Project may not achieve the broad objective of sustainable development and poverty reduction embodied in Bank Operational Policies and Procedures.
The government through UETCL, the implementing agency, will construct the Karuma- Kawanda 440kV, Karuma-Olwiyo 400kV and Karuma -Lira 132kV transmission lines to provide adequate capacity to evacuate power generated at the Karuma Hydro Power station (HPS)
According to Eriasi Kiyemba, UETCL managing director, already a detailed feasibility study of the transmission line has been completed.