Govt earns Shs300 billion from Bujagali buyout deal

Friday August 24 2018

Bujagali Electricity Limited is contracted to

Bujagali Electricity Limited is contracted to run the Bujagali Hydro Power plant, which was commissioned in 2012. FILE PHOTO 

By Christine Kasemiire

Kampala. SN Power AS, a Norwegian based company has finalised acquisition of shares from SG Bujagali Holdings, a part shareholder in Bujagali Electricity Limited.
The firm acquired a 49.5 per cent stake in the electricity company.
Bujagali Electricity Limited was contracted to run the Bujagali Hydro Power plant after it was commissioned in 2012.
SN power AS, now owns 49.5 per cent of the company after it invested $277m (Shs1.39 trillion) in acquisition of SG Bujagali Holdings shares.
The transaction which spent more than a year was approved by the Electricity Regulator Authority, who then wrote to the Uganda Revenue Authority to collect on the tax implications.
Mr Julius Wandera, the ERA communications manager, said they had acknowledged the transaction and asked URA to collect taxes on the transaction.
“Sithe Global, the American firm sold its stake in BEL. We wrote to URA that the transaction had tax implications. They acknowledged and asked us to approve,” he said.
This investment was meant to earn Uganda 30 per cent of the $277m as capital gains tax according to Uganda’s tax laws. This implies that Uganda is meant to earn more than Shs300b in capital gains tax.
Asked if URA had collected the tax, Mr Hudson Kalema, the URA acting commissioner public and corporate affairs manager, said the matter was still under review.
“This matter is still under review. When it is due, we will communicate to the public right away,” he said.