Uganda: Diesel thermal generators to be phased out next month

[phantom power]

Apparently, they're staking their hopes on heavy fuel oil and NG.

All diesel thermal generators will be phased out with effect from next month (September) as government battles the power shortage that has led to endless load shedding. The government can no longer afford to run the expensive generators, which have apparently not created any impact as far as bridging the power supply gap is concerned.

In his response to the report of the National Resources Committee on the Ministerial Policy statement and budget estimates for the financial year 2008/9 on August 20, Energy Minister Mr Daudi Migereko said that by September this year, the government will have 50MW of Heavy Fuel Oil (HFO) at Namanve.

Mr Migereko said the HFO, will be followed by 10MW of HFO at Tororo by Electromax, followed by 50-85MW of HFO at Kaiso Tonya, followed by 50MW of HFO at Njeru by Invespro. He said the HFO equipment being procured will also be able to use natural gas from our Oil fields as discoveries and production of oil and gas progress.

(...)

On the Bujagali project, Mr Migereko said both the developer and the contractor were procured through international competitive bidding.
He said there are a number of key considerations that needed to be taken into account. He cited world price of materials like steel, cement and fuel. He also cited limited appetite of Development Finance Institutions to finance projects in the country.

http://www.monitor.co.ug/artman/publish/business/Diesel_thermal_generators_to_be_phased_out_next_month_70443.shtml

[Dead_Parrot]

1. What could possibly go wrong? nt