28/07/2014 08:22:29 Free Membership Login

Uganda To Stop Buying Power From 2 Thermal Plants This Year -Minister

Date : 07/15/2011 @ 3:07AM
Source : Dow Jones News
Stock : Aggreko (AGK)
Quote : 1766.0  29.0 (1.67%) @ 8:05AM
Aggreko share price Chart

Uganda To Stop Buying Power From 2 Thermal Plants This Year -Minister

Aggreko (LSE:AGK)
Historical Stock Chart

5 Years : From Jul 2009 to Jul 2014

Click Here for more Aggreko Charts.

Uganda's government will stop buying expensive power from two thermal plants owned by London-listed Aggreko PLC (AGK.LN), in a bid to reduce its electricity subsidy burden, Minister of Energy and Minerals Irene Muloni said Friday.

The government will terminate its contract with the Kiira and Mutundwe plants--which have a combined capacity of 100 megawatts--by November, when the first unit of the 250 MW Bujagali Hydropower Project is commissioned.

Power from the Bujagali project will be cheaper and eliminate the need for expensive thermal power, Muloni said.

The Bujagali project is jointly owned by Sithe Global Power LLC and the Aga Khan Fund for Economic Development.

Aggreko officials couldn't comment immediately.

Uganda has been grappling with acute power outages over the past two weeks, after two thermal plants were shut down due to unpaid arrears of around 300 billion Ugandan shillings, or $118 million.

The country spends at least $300 million every year on subsidizing thermal power plants, which supply most of the power generated to primary processing industries handling coffee, cotton, cocoa, tea, fish and horticulture products.

Uganda, which contracted thermal generators in 2006 to supplement hydropower, is expected to retain some heavy oil-fired plants that will be using crude oil produced in the Lake Albertine rift basin during an extended well testing program expected to commence before the end of the year.

UK-based Tullow Oil PLC (TLW.LN) is expected to conduct the program in three blocks in the Lake Albertine rift, where at least 1 billion barrels of oil have been discovered.

Uganda is expected to start commercial oil production by 2014.

-By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615 bariyonic@yahoo.co.uk



Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE and AMEX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

1 site:2 us 140728 08:22