Namanve Thermal Power Station

Namanve Thermal Power Station (50MW).

On 13^th April 2007, the Government of Uganda (GoU) and Jacobsen Elektro AS Norway, an independent Norwegian power production company entered into a Build Operate and Transfer (BOT) Implementation Agreement (IA) for a term of thirteen (13) years. Wherein Jacobsen Elektro undertook to build, operate, and maintain a 50 MW Heavy Fuel Oil (HFO) Thermal Power Plant worth Euro 66 Million at Kiwanga Village, Nantabulilwa parish, Goma sub-county, Mukono Municipality in Uganda.

The plant is commonly known as Namanve Thermal Power Plant (NTPP) and has seven (7) generating sets (Wartsila W18V32 Engine) each rated at 7.285MW thus giving a total plant installed capacity of 50MW. On 26^th July 2007, Jacobsen Elektro AS Norway assigned in full the Implementation Agreement to Jacobsen Uganda Power Plant Company Limited (JUPPCL) a limited liability company incorporated under the laws of Uganda to undertake operation and maintenance of the Thermal Power Plant. The plant was commissioned on 5^th November 2008 by H. E. the President of the Republic of Uganda.

Upon expiry of the Implementation Agreement, in September 2021, the Government of Uganda officially received the power plant from Jacobsen and handed it over to UEGCL to undertake the Operation and Maintenance of the thermal plant on behalf of the Government on 22^nd February 2022. The handover ceremony was officiated by Hon. Ruth Nankabirwa – Minister of Energy and Mineral Development at Namanve Thermal Power plant. This followed the due diligence that was completed by the Auditor General and the Ministry of Energy and Mineral Development to settle outstanding Government obligations in December 2021.

The Electricity Regulatory Authority (ERA) has already approved the Power Purchase Agreement and awarded a Generation License for UEGCL to undertake the Operation and Maintenance of the Namanve Thermal Power Plant. UEGCL’s Operations of Namanve Power Plant commenced after Jacobsen signed a Transfer Agreement. UEGCL obtained all the service contracts (fuel, oil, staff, etc.) necessary to undertake the Operations and Maintenance of the power plant. ERA has assessed that Government will benefit from this takeover in the following ways;

There will be about an 18% reduction in the generation tariff. The tariff has largely been high because of the private player.
The government will save UGX 7.7 billion per year for the first three years and about UGX 9 billion per year thereafter.
The takeover will enhance the internal capacity of UEGCL to independently operate and maintain power plants.