Assessing the effectiveness of private sector participation in enhancing performance of electricity sector in Uganda : Uganda Electricity Generation Company Limited (UEGCL), Uganda Electricity Transmission Company Limited (UETCL) and Uganda Electricity Distribution Company Limited (UEDCL)

Abstract

This study mainly examined the effectiveness of Private Sector Participation in enhancing performance of Electricity Sector in Uganda. It was guided by three objectives, which included establishing the effectiveness of private sector participation in electricity generation, establishing the effectiveness of private sector participation in electricity transmission and establishing the effectiveness of private sector participation in electricity distribution. The study utilized a descriptive and cross-sectional research design while considering both quantitative and qualitative approaches. The data was collected using the research questionnaire as the main tool of the study but follow-up interviews with different directors of UEGCL, UETCL and UEDCL were conducted. The study targeted 48 respondents but 43 managed to respondent back. The study findings revealed that private sector effectively participate in electricity generation inform of funding the projects, supervision and consultations on how electricity should be generated. However, activities like identification of electricity generation sites, tendering service providers and some small electricity generation projects are handled by the government without involving the private sector. It was also revealed that private sector effectively participate in funding of electricity transmission projects, construction and maintenance of electricity transmission lines. However, private sector is not allowed to purely own the transmission lines and the risks involved in the transmission are appropriately shared between the government and the private sector. Furthermore, private sector effectively participate in electricity distribution inform of funding, construction and maintenance of distribution lines, collection of electricity tariff collection for example like UMEME. However, the study also concluded that distribution of electricity cannot be purely done by private sector. The role of monitoring and supervision is done by the government and the risks involved electricity distribution is appropriately shared between the government and the private sector. The study recommended that the approach of private sector participation should be refined and take into account the profitability aspect and offer incentives to players involved, reducing political and regulatory risks by carrying out political, economic and social reforms to address the culture of corruption, investing heavily in developing technical capacity and expertise of human resources in the country and increasing the budget of the electricity sector as backup plan in case the private sector fails to meet their financial pledges.