2026 NRM RE-ELECTION BLOW! Museveni’s wish to enable rural Ugandans access electricity in jeopardy as Chinese firm TBEA, Ugandan subcontractors’, Energy ministry bosses fallout

By 2026, the Government of Uganda anticipates to see 60% of Ugandans connected to the national grid. Currently the electricity connection stands at 30%.

This ambitious but realistic plan is supposed to be implemented by the Rural Electrification Agency (REA) which was recently reverted to her mother ministry of Energy and Mineral Development.

The target is mainly rural areas.

With this in mind, in 2019 REA set to connect 580 sub-counties and 52 town councils.

The project dubbed “Bridging the Demand-Supply Gap through Accelerated Rural Electrification Programme (BDSGAREP)” is financed through a concessional loan from the EXIM Bank of China to a tune of $212m (sh763b).

Typical of most conditioned Chinese loans, Chinese firm TBEA Co., Ltd, seized the opportunity to expand its footprints in Africa. It was contracted to execute it.

It also in turn subcontracted 45 Uganda firms to help it out and the project kicked off immediately.

The project was to be implemented in five phases. The 1st phase included the official Project Launch Schemes that were selected to achieve visibility in relatively less served districts. The 2nd phase included shorter schemes that can be quickly commissioned to increase project visibility in order to achieve, in a short time, a higher percentage of administrative centers connected and manage public expectations.

Phase 3 included the longer lines that would require more resources and time while the rest included schemes that are planned to interconnect with lines that are to be constructed by other REA projects, which were to be implemented, especially the World Bank funded Energy for Rural Transformation (ERT III) and the African Development Bank (AfDB) funded UREAP projects.

The overall plan was to ensure that all lines for which construction was completed were commissioned within the shortest time possible and handed over to the respective Service Providers for management and commencement of implementation of customer connections.

2026 NRM RE-ELECTION BLOW AS TBEA AND SUBCONTRACTORS CLASH

Such projects are a reason why the National Resistance Movement (NRM) keeps bouncing back in power every five years with President Museveni on the steering wheel.

However, as he plans to come back in 2026, the re-election chances are under threat following a fierce row between TBEA and the 45 subcontractors.

This publication is in possession of a dossier detailing the untold suffering, TBEA, has been occasioning the subcontractors and if not addressed as soon as possible, many rural Ugandans won’t be connected to the national grid by 2026.

The subcontractors also accuse REA and the ministry of energy for keeping a deaf ear.

This implies that peasants in deep villages will still go without connection to the power grid as promised by the NRM during the 2011, 2016 and 2021 presidential elections.

Because of this, the ruling party will find it hard to explain to the electorate why so many villages in the countryside have spent 15 years not connected to the grid despite their capacity to pay the bill and availability of enough electricity.

Is the ministry of energy losing its grip? The new development is threatening not only the peasants’ chances to enjoy free connection to the grid but the power base of the ruling NRM.

Up to now, some rural areas don’t have electricity (yet they were promised in the 2011, 2016, 2021 NRM-re-election manifestos).

Below is a petition by the subcontractors demanding a meeting with stubborn TBEA bosses. They also list all their grievances.

RE: PETITION FOR AN URGENT MEETING BETWEEN TBEA AND THEIR SUBCONTRACTORS.

PROJECT: BRIDGING THE DEMAND SUPPLY BALANCE GAP THROUGH THE ACCELERATED RURAL ELECTRIFICATION PROGRAMME.

The above subject in the caption refers.

We, the subcontractors’ of TBEA Company Limited, wish to thank you for contracting us way back in 2019 in schemes all over the country.

However, we have for some time noted with concern a number of issues that have been recurring since when we signed that contract.

We have kept on communicating to you those issues but you have deliberately refused, ignored and neglected to call for a meeting between TBEA, Ministry of Energy and Mineral Development and us your subcontractors to resolve those issues.

The following are therefore the subcontractors’ concerns that form the basis for this petition which MUST BE attended to and discussed urgently for the good of subcontractors and their workers.

DELAYED PAYMENT OF 30%

Members are constrained as their resources are held up in the 30%. They can’t maintain working groups on site, servicing Loan Facilities, confiscation of Property due to delays arising from non-payment.

They have several sites, yet TBEA Co. LTD retains 30% per site on each invoice made from 2019 to date, causing challenges to the cash flows of Subcontractors because of the over stretched delay in commissioning and issuance of a takeover certificate.

DELAYED ISSUANCE OF TAKEOVER CERTIFICATE

The warranty period is one year, which is calculated from the date on which the Taking-over certificate is received from the employer (REA), however, subcontractors don’t have a contract with REA.

But the contract with (REA and TBEA) Required TBEA to be issued a Takeover CERTIFICATE after completing 30 sub counties which was diverted by TBEA to us the subcontractors, making intended delays to issue certificates such that payments of 30% are done. This can be justified on the 21st day of July,2022 when we laboured to meet the Permanent Secretary, Ministry of Energy and Mineral Development to reduce on the sub counties such that we get our certificates, as the Ministry accepted to revise the contract, TBEA refused what the Ministry had fronted with a hidden agenda.

MATERIAL DELAY

We have experienced material delay at some sites. That is to say 11kvA transformers were not installed in some districts since they have not been supplied by TBEA. This has made those Lines not to be commissioned yet some where completed in 2020, and subcontractors had incurred a lot of expenses on them and don’t know when they will be paid.

DELAY OF COMMISSIONING

There has been continued delay of commissioning of the complete lines for the past 4years, due to inefficiency in supply of material as explained above.

Furthermore, vandalism. For example cables are being cut and poles being stolen day in day out, to our dismay the loss is being put on the Sub-Contractors even when the Insurance Company is willing to compensate them.

DELAY AND POOR PAYMENT

For example according to the contract, 70% progress payment for the completed works is to be paid however, every month undervaluation of completed work is done which when AS-BUILT is done there is always a difference between the Kilometres worked on and the Kilometres paid for resulting to so many negative factors for example;

a) Illegal connection whereby natives seek means end by connecting themselves to the power line constructed yet the Subcontractor has not yet been paid.

b) Workers’ striking on site due to inadequate communication concerning the current situation of work and payment, this has led to theft of material on site, tools and equipment of the Sub-contractors yet most of us used Loaned money to Purchase them.

OTHER CHALLENGES

Lack of joint supervision by REA and TBEA: since October 2019 has created many contradictions on the standard of the power lines hence leading to repeat of works which are unpaid.

Materials such as Murram bands, Charcoal dust are forced on us without looking at the Peanut pay hence leading to Sub-standard work which ruins the Subcontractors reputation.

Long distance: As per the contractor we are to be paid any increase in over 100km distance, however to our dismay this agreement was breached and we drive over 128 km to the warehouses with no extra pay.

Mistrust and despair of the community due to delay of commissioning hence leading to energy loss since the community has decided to forcefully connect themselves.

Dollar rate: We signed the contract in agreement to be paid in the United States Dollar however, with increasing fluctuation in the international market we are continuously making losses since the value keeps on fluctuating.

Poor quality of materials provided whereby even before liability periods poles are cracked and faulty leading to redoing of work at our cost hence an impact on the net profit.

Power outage procedures are being pushed to us to carry out shut downs and all the procedures without aid from the main contractors.

Topography: Areas which are rocky and swampy are all considered the same as normal ground with no extra rate of pay or material provided yet work in these areas is impenetrable and highly costly, leaving Sub-Contractors financially constrained.

It is on record that the Government wants to promote indigenous companies however with these challenges, our companies reputation is being tainted and with great fear that the contractor might flee with pending pay which is currently being held.”

WAY FORWARD

This publication contacted TBEA official only identified as Xeud and said to be a project manager. He said the firm had a meeting on Friday with the subcontractors and commitments were made to address all their grievances.

However, some of the subcontractors this publication talked to say the meeting instead worsened the current situation as TBEA officials could not commit to anything.

The subcontractors also accuse REA and the ministry of energy of not intervening to save the situation.

The ministry of energy has been contacted for a comment. MORE DETAILS ON THIS IN OUR SUBSEQUENT PUBLICATION.

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