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Tata Power eyes Uganda power sector

Uganda has invited eight international firms to bid for its electricity generation and distribution companies, officials said on Tuesday.

Uganda's Utility Reform Unit invited pre-qualification bids on Monday for 20-year concessions in the Uganda Electricity Distribution Company and Uganda Electricity Generation Company.

"These are the final stages of the privatisation of the Uganda Electricity Board," Utility Reform Unit director Emmanuel Nyirinkindi told Reuters.

In March UEB was unbundled into generation, transmission and distribution units in preparation for eventual privatisation.

Companies that have shown an interest in UEDC are British-based Commonwealth Development Company Capital Partners, US power producer and distributor Cinergy Corp, and Ireland's Electricity Supply Board International.

US firm AES Corp, Tata Power Ltd from India and Japan's Marubeni Corporation expressed an interest in UEGC.

Spanish firm Union Fenosa and South Africa's Eskom Enterprises were said to be interested in both concessions.

The distribution concession has 160,000 clients and annual revenues of 80 billion Uganda shillings in 2000. The generation concession is made up of an installed capacity of 260 megawatts and asset value of $307 million.

After the concession expires the companies' assets will revert to the government.

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