CEO’S MESSAGE

Energy and particularly electricity is pivotal for social-economic development. Uganda Vision 2040 identifies electricity generation as one of the key strategic interventions for social-economic transformation of the country. UEGCL has a central role to play in executing this plan and the strategic direction is a vehicle for realizing this vision.

The NDP 2010 – 2015 sets a projected target of increasing electricity consumption per capita from 75 kWh/Capita (2010) to 1,273 kWh/Capita (2020) and this requires an additional 8,200 MW in installed capacity. The current national installed capacity is 850 MW. It is therefore with great pleasure that we present the UEGCL Strategic Direction for the period 2015 – 2017 as part of the process to articulate the planned contribution of UEGCL to the Government’s development agenda. The UEGCL Three Year (2015-2017) Strategic Direction is an implementation vehicle to unlock the most binding constraint (electricity) to economic growth and development of Uganda.

The preparation of the Strategic Direction took into consideration the strengths, weaknesses, opportunities and threats that UEGCL is faced with. Key among the strengths identified are the technical competences, while a number of challenges were identified including poor financial health, low operational efficiency, ageing and obsolete assets especially at the Nalubaale hydro-electric power plant, declining generation market share, over-reliance on hydropower resource, and water discharge permit restrictions.

Some of the opportunities identified, were the Political Will, existence of potential hydro power sites, while threats identified mainly related to unpredictable hydrological conditions, adverse effects of climate change and limited investment and financing options. In line with the above situation analysis, UEGCL has mapped out a multifaceted strategy to capitalize on the existing strengths and weaknesses, while at the same time mitigating the weakness and threats.

As a precursor, UEGCL’s mandate has already expanded from Concession monitoring to implementing Governments flagship
projects of Karuma, Isimba, and Ayago Hydropower projects. UEGCL is grateful to Government for raising the much needed funding for these infrastructural flagship projects that will enhance our financial health and enable us support national goals. The UEGCL “New Vision” and Strategic Direction have been aligned to the four perspectives of the Balanced Scorecard, namely:
Financial, Customer, Internal Business Process, and Learning and Growth. These four management processes contribute to linking
long-term strategic objectives with short-term actions.

For each of these perspectives, a number of strategic objectives have been developed, together with key performance targets. The objectives, measures, and targets have been cascaded through a performance assesment system to Business Units
and individual levels to ensure that everyone has a clear focus to perform towards achievement of the corporate goals. In terms of monitoring and evaluation mechanisms, UEGCL has adapted a quarterly and annual PDCA approach (Plan Do Check Act) under the overall supervision of the G4g Steering Committee.

UEGCL is committed to implementing the strategy plan and attain the key targets in the next three years. In tangible terms, the strategic objectives aim to:
• Increase hydropower installed capacity by 50% from 380 MW to 563 MW in three years;
• Grow revenues by an average of 45% per year;
• Improve the financial health from loss of 11 billion to a profit of 2 billion in three years;
• Optimize operations to generate more electricity during peak load hours;
• Improve investment and operational efficiency with the aim of achieving the lowest unit cost of generation in the region to support government initiatives of keeping tariff affordable and competitive;
• Implement a condition-based maintenance strategy that uses new technologies to monitor equipment and performance;
• Realize UEGCL’s accreditation to ISO Standards for QMS, Asset Management, Safety & Environment;
• Establish a Training Centre and Professional Services Unit for sustainable energy systems;
• Build local capacity for operation and maintenance of Karuma, Isimba, Muzizi, and Nyagak III Hydropower plants and support government initiatives of providing employment to the youth.
• Invest about USD 5million annually in refurbishing Naluubale and Kiira generating facilities

I am confident that UEGCL’s New Vision and Strategic Direction provide the requisite momentum and inspiration for turning around
the Company and refocusing it to fulfill its expanded mandate and contribute to social-economic transformation of Ugandans.
I would like to thank all UEGCL Staff, the Board of UEGCL, and other key stakeholders who are making a contribution towards realization of our change Vision and Strategic goals for 2015 – 2017.

Dr.Eng Harrison E.Mutikanga
C.E.O.

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