KAMPALA (Reuters) – Uganda is seeking to borrow $190 million from Stanbic Bank to compensate power distributor Umeme Limited for its investments in the national grid after its concession expires next month, a senior finance ministry official said.
Umeme, which is listed on both Uganda and the neighbouring Kenyan bourses, has been running a power concession in Uganda that started in 2005.
The Ugandan government declined Umeme’s request to extend its 20-year concession that expires next month. The concession’s terms require the government to pay Umeme all unrecovered capital investments when the agreement ends.
State Minister for Finance Henry Musasizi has sent to parliament a request to allow the government to borrow the money, he said in a post on social media platform X late on Tuesday.
(Reporting by Elias Biryabarema; Editing by George Obulutsa and Lincoln Feast.)
