The Ministry of Finance has warned Parliament that if the US$190,988,565 (UGX696.621Bn) loan for Umeme Limited buyout isn’t provided by end of February 2025, Uganda will pay interest of 10% on the buyout amount within 30days, while this interest will rise to 15% if the buyout amount isn’t paid between 46 to 90days, while an interest of 20% will be charged if the money isn’t paid after 91 days.
The revelation was made by Henry Musasizi, Minister of State for Finance while appearing before Parliament’s National Economy Committee, where he noted that the timely payment of the buyout amount will enable a smooth transition and the transfer of the distribution network assets and its operations to Uganda Electricity Distribution Company Limited (UEDCL).
This financing should be made available by end of February 2025. If payment of the buyout amount is delayed, Government shall pay interest to Umeme Limited on any outstanding portion of the buyout at the rate of 10% per year for the period of 30 days to 45 days after the end of the natural term. 15% of the period from 46 days to 90days after the end of the natural term and 20% for the period after 91 days after the end of the natural term until Government pays the buyout amount in full,” said Musasizi.
