Gov’t moves to acquire Tycoon Bitature’s ElectroMaxx Thermal Plant for UGX 240.9 Billion
Drake Nyamugabwa
Cabinet has given approval to a deal with the government to acquire a thermal plant owned by Electromaxx, a company controlled by tycoon Patric Bitature for the sum of UGX 240.9 billion ($66 million), following a meeting on Monday.
Electromaxx is the first indigenous privately owned power-generating company in Uganda. It operates a thermal power plant with an installed capacity of 90 MW in Tororo, close to the Kenyan border. The power generated is sold to the national grid under a Power Purchase Agreement.
The deal is packaged to secure Bitature’s Electromaxx Thermal Plant as an auxiliary to its existing grid, which move was against Auditor General (AG) John Muwanga’s recommendations, but the government has ignored it.
The improvement in the prospects, backed up by the government now awaits agreement specifics as developments will continue to unfold.
Minister of Finance Matia Kasaija in an interview without revealing much details confirmed that the government had indeed signed a Memorandum of Understanding with Bitature.
“Yes, we have done a Memorandum of Understanding with Bitature,” he said
From the business community, many Ugandans has said that the move was designed as a bail out based on the previous reports from The International Chamber of Commerce Court of Arbitration in London, which has recently told the Dr. Patric Bitature, his wife Carol Nzaro, and four of their companies to pay South African lender, Vantage Mezzanine Fund, $66m US Dollars.
