Annual

ANNUAL
REPORT 2015
www.uetcl.com
transco@uetcl.com
Cover Photo: Namanve GIS 132/33kV substation
2 Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015

Table of contents
Notice of the Annual General Meeting 4-5
Corporate Information 6 -7
Abbreviations & Acronyms 8
Vision 9
Mission` 9
Core Values 9
Company Strategic Focus Areas 9
Financial and Operational Highlights 10
Power Purchase Agreements Executed in the Year 2015 11
Business Performance & Highlights 12-16
Board Members 18-19
Management Team 20
Chairman’s Statement 22-23
Report of the Managing Director/CEO 24-28
UETCL Present & Future Grid Network 29
Health Safety & Environment 30
Corporate Governance 31-34
UETCL Risk Statement for 2015 35-36
Auditor General’s Report 39-44
Financial Statements
Directors’ Report 46-47
Statement of Directos’ Responsibilities 48
Report of the Independent Auditor 49-50
Statement of Comprehensive Income 51
Statement of Financial Position 52
Statement of Changes in Equity 53-54
Statement of Cashflows 55
Notes to the financial Statements 56-98
Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015 3

P. O. Box 7625 Phone: +256 41 423-3433/4
Kampala, Uganda Fax: +256 41 434 1789
10 Hannington Rd Email: transco@uetcl.com
UGANDA ELECTRICITY TRANSMISSION COMPANY LTD

Corporate Information
Uganda Electricity Transmission Company Limited is incorporated in Uganda under the Uganda Companies Act and
the Public Enterprise Reform and Divestiture Act, as a limited liability company, and is domiciled in Uganda.
Its principal business is licensed to operate and maintain high Grid Voltage transmission lines, as a system operator
and Bulk Power Purchaser and Seller in the local market. It is also licensed to import and export power into and out
of Uganda. Further, it is licensed as a Public Infrastructure Provider to operate and lease out excess capacity of the
optic fibre cable.
Plot 10 Hannington Road

P. O. Box 7625, Kampala-Uganda
Registered Office: Tel: +256 414 233 433/4, +256 417 802 000, +256 314 802 000
Fax: 256-41-4341789
Email: transco@uetcl.com
Government of Uganda represented by:

Shareholders: Minister of Finance, planning & Economic Development
AND Minister of State for Finance In charge of Privatization.
Mr. Peter Ucanda - Chairman

Mr. Eriasi. Kiyemba - Executive Director
Ms Sarah I. Timarwa - Non Executive Director,
Directors: Mr. John Genda Walala - Non Executive Director
Eng. Paul Mubiru - Non Executive Director
Mr. Nicholas Oluka -Non Executive Director
Mr. Christopher Mugisha - Non Executive Director
Ms Kateera & Kagumire Advocates

Company Secretary
P. O. Box 7026. Kampala
Standard Chartered Bank (U) Limited

5 Speke Road P. O. Box 7111
Kampala
Citibank (U) Limited
Centre Court
4 Ternan Avenue, Nakasero
P. O. Box 7505
Kampala
Stanbic Bank (U) Limited
Crested Towers
Plot 17 Hannington Road
Bankers: P. O. Box 7131
Kampala
Barclays Bank of Uganda Limited
Plot 2/4 Hannington Road
P. O. Box 7101
Kampala
CitiBank (U) Limited
Centre Court
4 Ternan Avenue, Nakasero
P. O. Box 7505
Kampala

The Auditor General
External Auditors: Plot 2/4 Kaggwa Road
P. O. Box 7083, Kampala
Kateera & Kagumire Advocates

Principal Legal Advisers:
P. O. Box 7026. Kampala
Price Water House Coopers Limited

Principal Tax Advisers:
P. O. Box 8053, Kampala
Local Distributors
Umeme Limited
Ferdsult Engineering Services Limited
Pader Abim Community Multipurpose Energy Cooperative Society (PACMECS)
Bundibugyo Energy Cooperative Society Limited (BECS)
Kilembe Investments Limited (KIL)
Clientele: Kyegegwa Rural Electricity Cooperative Society Limited (KRECS)
Distributors/Exports Uganda Electricity Distribution Company Limited (UEDCL)
Regional Power Trade Partners (Power Exports)

Kenya Power & Lighting Co. Limited (KPLC)
Tanzania Electricity Supply Co. Limited (TANESCO)
Electricity Utility Corporation Limited (EUCL) - Rwanda
Société Natianale d’Électricité - DR Congo
Local Independent Power Producers

Bugoye Hydro Power Limited
Bujagali Energy Limited
Eco-Power Limited
Electro-Maxx ( U) Limited ,
EMS Africa Mpanga Limited
Eskom Uganda Limited
Independent Power Hydromaxx U Limited ( Kabalega Power Station)
Producers (IPPs) and Jacobsen Uganda Power Plant Co.Limited
Regional Power Partners Kakira Sugar Limited
Kasese Cobalt Company Limited
Kinyara Sugar Works Limited
Sugar Allied Industries Limited,
Tibet Hima Mining Company Limited ( Formerly Kilembe Mines Ltd) ,
Regional Power Trade Partners (Power Imports)
Electricity Utility Corporation Limited (EUCL) - Rwanda
Kenya Power & Lighting Company Limited
Sub stations: 17 Grid Substations, with capacity of 1,000 MVA
Transmission line Circuit 1,616km (Comprising 150km at 220kV, 1431km at 132kV and 35km at 66kV).
Distance: Of the 1,616km, 621km is on wooden structures
Number of employees: 441

Abbreviations & Acronyms
CBP Corporate Business Plan
CoD Commercial Operations Date
ERA Electricity Regulatory Authority
EUL Eskom Uganda Limited
GIS Gas Insulated Substation
GWh Giga Watt-hour
HFO Heavy Fuel Oil
HV High Voltage
IPP Independent Power Producer
KCCL Kasese Cobalt Company Limited
kV Kilovolts
kWh Kilo Watt-hour
KML Kilembe Mines Limited
KPLC Kenya Power and Lighting Company Limited
MEMD Ministry of Energy and Mineral Development
MFPED Ministry of Finance, Planning and Economic Development
MW Mega Watt
TANESCO Tanzania Electricity Supply Company
UEB Uganda Electricity Board
UEDCL Uganda Electricity Distribution Company
SNEL Société Natianale d’Électricité
Namanve GIS 132/33kV Substation

Vision
Electricity Transmission for Sustainable Regional Development
Mission
To Buy, Transmit and Sell Quality Bulk Power
Sustainable Corporate Values

Respect and Responsibility: Act Reliably, with Loyalty and Integrity
Transparency; Strive for Openness and,
Compliance; Safety for all and follow decisions that preserve the environment and health and
safety for self, all employees, other stakeholders and property.
Innovation;
(i) Show initiative, self-drive and willingness to continuously learn and improve quality
(ii) Be cooperative and show team spirit that enhances results and fosters equality, diversity,
harmony and fellowship.
Company Strategic Focus Areas
Security of Power
Supply and Regional
Cooperation
Accelerated Grid
Efficient Business
Infrastructure
Processes Electricty
Development
Transmission for
Sustainable Regional
Development
Robust Human Financial

Capital Development Sustainability

Financial and Operational Highlights
Financial Statistics 2015 2014

For the year Ushs million Ushs million
Revenue 788,321 750,328
Gross profit (20,768) 79,246
Operating (loss) / profit (125,048) 22,072
(Loss) /Profit before tax (125,807) 19,858
(Loss) / Profit for the year (96,616) 16,596
Non-current assets 1,062,753 797,151
Current assets 546,541 570,452
Equity 371,249 467,927
Non-current liabilities 828,019 544,822
Current liabilities 410,026 354,854
Cash flow data

Net cash- flow from operating activities (83,086) 113,543
Net cash flows used in investing activities (281,706) (236,942)
Net Cash flow from financing activities 251,454 215,718
Operating and other statistics 2015 2014

Electricity purchase during the year (GWh) 3,333.57 3,202.61
Electricity sales during the year (GWh) 3218.48 3098.70
Energy Losses (%) 3.45% 3.24%
Total transmission network length (Km) 1,616 1,616
Total Number of Substations 17 17
Total Transformation Capacity 960.5 885.5
Total number of company employees 441 426
Opuyo 132/33kV substation

Power Purchase Agreements
Executed in the Year 2015
No NAME OF PPA TECHNOLOGY Proposed DURATION
TYPE Installed
CAPACITY/ MW
1 Karuma Hydro Power Plant Hydro 600 40 Years
2 Isimba Hydro Power Plant Hydro 183 40 Years
3 Elgon SITI (PVT) LTD SITI 2 Hydro 16.5 20 Years
4 Access Uganda Solar LTD Solar 10 20 Years
5 PA Technical Services Limited ( Nkusi lower ) Hydro 9.6 20 Years
6 Africa EMS Nyamwamba Hydro 9.2 20 Years
7 Sugar & Allied Industries Ltd (SAIL) Co-Gen 6.9 20 Years
8 Jelco Nengo Hydro Power Co. LTD Hydro 6.7 20 Years
9 Muvumbe Hydro (U) LTD Hydro 6.5 20 Years
10 Rwimi EP Company Hydro 5.54 20 Years
11 Lubilia Kawembe Hydro Limited Hydro 5.4 20 Years
12 Butama Hydro Electricity Co. Ltd/sindila Hydro 5.25 20 Years
13 Elgon SITI (PVT) LTD SITI 1 Hydro 5 20 Years
14 Hydromax (Nkusi) LTD-WAKI Hydro 4.8 20 Years
15 Mahoma Uganda Limited Hydro 2.7 20 Years
877.09

Business Performance Highlights
Revenue
Up by 4.4%
Cost of Sales
Up by 4.0%
Energy Purchase-GWh
up by 6%
Thermal dispatch-GWh
Up by 98.4%
Non-Current Assets
up by 23.9%
Gross Profit
Up by 23.9%
Kawanda 400kV substation plant house

UETCL MD/CEO Mr. Eriasi Kiyemba ( Standing Center in a grey suit) takes a
group photo with the company staff after the launch of the company Corporate
Business Plan (CBP) 2014-2018 at the Speke Resort Munyonyo in Kampala.

Board Members
Mr. Peter Ucanda - Chairman
Mr. Peter Ucanda holds a Bachelors of Science (Hons) Degree in
Geography & Botany and Diploma in Public Administration. He is a
member of the International Personal Management Association and the
African Association of Public Administration and Management. He has
over 34 years of national and international experience in management,
administration and leadership. He was a Permanent Secretary/Office
of the Prime Minister, Director of National Population and Housing
Census, Permanent Secretary/Ministry of Labour, Permanent Secretary
Ministry of Defence, Permanent Secretary Office of the President, Head
of Public Service and a consultant for CIDA for Botswana, Lesotho and
Swaziland.
Mr. Eriasi Kiyemba - MD/CEO

Mr. Eriasi Kiyemba holds a Masters of Science Degree in Engineering
from Moscow University and a Masters of Science Degree in
Electrical Power System Analysis from the University of Manchester
Institute of Science and Technology, UK. He is a member of the
Institute of Electrical and Electronics Engineers (IEEE). He has a wide
experience in electrical engineering and management having risen
through the ranks from Trainee Engineer in the unbundled Uganda
Electricity Board (UEB) to Senior and Principal Control Engineer. He
rose to the position of General Manager Transmission Services in the
former UEB and has been the Managing Director of Uganda Electricity
Transmission Company Ltd since its inception in 2001
Mr. Nicholas David Oluka - Member

Mr. Nicholas Oluka is a former commissioner in the Ministry of Finance,
Planning and Economic Development with vast knowledge in policy
formulation and implementation. He also has extensive knowledge
in Board matters, having been a Board member of the following
entities; Uganda Printing and Publishing Corporation, Uganda Cotton
Development Authority, Dairy Development Authority and Teso
Diocese Development Office (Director)
Mr. Christopher Mugisha - Member

Mr. Christopher Mugisha holds a Masters in Business Administration
from the University of Ljbjana, Faculty of Economics – ICPE, Slovenia and
is completing a Msc (Fin & Acc) from Makerere University. He also holds
a Bsc from Makerere University. He is a financial and restructuring expert
having participated in the turn-around of several public enterprises in
the Country. He is currently the Director of Parastatal Monitoring Unit
and the Accounting officer of Parastatal Monitoring/Privatization Unit
of Ministry of Finance, Planning and Economic Development where he
has risen through the ranks to the helm.

Eng. Paul Mubiru - Member
Eng. Paul Mubiru holds a Bachelors of Science Degree in Mechanical
Engineering from Makerere University, a Masters of Science Degree
in Development Technologies from the University of Melbourne,
Australia. He is a member of Uganda Institute of Professional Engineers.
He has a long experience in the energy sector working for the Ministry
of Energy and Mineral Development where for a long time he was
a Commissioner for the Energy Department. He participated in the
formulation of the Electricity Act 1999. He played an important role
on behalf of Government in the negotiations of the Power Purchase
and Implementation Agreements of the Bujagali Hydropower Project
and other projects. Currently he is the Director for Energy and Mineral
Development in the Ministry of Energy and Mineral Development.
Ms Sarah I. Timarwa - Member

Ms. Sarah Timarwa holds Bachelors of law Degree from Makerere
University, and a Diploma in Legal Practice from the Law Development
Centre. She has a very wide experience in law and legal practice.
She was a Principal State Attorney in the Ministry of Justice and
Constitutional Affairs and a Senior Private Secretary to the First
Lady of the Republic of Uganda. She was a Corporation Secretary of
Uganda Posts and Telecommunication Corporation and a law lecturer,
Department of Business Studies, Kenya Polytechnic. She is the Founder
and Chief Executive Officer of Holistic Restoration Ministries, a ministry
that focuses on the disadvantaged groups, mainly Widows, Orphans
and other vulnerable persons. She has been the Eastern Africa Regional
leader for Women of Global Action since the year 2000 to date.
Mr John Genda Walala - Member

Mr. John Genda Walala holds a Bachelors of Commerce Degree in
Accounting (Hons) from Makerere University, a Masters of Business
Administration Degree from -Watt University, Edinburgh, UK and is a
member of the Institutes of Certified Public Accountant of Uganda
and Kenya. He has a wide experience in financial management and
administration. He was the Chief Accountant of Uganda Breweries ltd,
Manager Finance of Kibo Breweries Ltd and Commissioner Corporate
Services, Uganda Revenue Authority. He was a member of Electricity
Disputes Tribunal, a tribunal responsible for disputes resolution in
the power sector. He is a lecturer of Professional Ethics and Values
at Management and Accountancy Training College and is currently
the Director of Local Government Inspection at the Ministry of Local
Government.
Mr. Dennis Wamala

Representing Company Secretary, M/S Kateera & Kagumire Advocates
Mr. Wamala holds a Bachelors of Law Degree from Makerere University
and a Diploma in Legal Practice from the Law Development Center.
He has extensive knowledge in Law and Legal Practice, particularly in
the Energy sector and Corporate Governance. He has practiced with
Kateera and Kagumire Advocates since 1999 and is a senior partner
with the firm.

Management Team
Eriasi Kiyemba Willy K. Kiryahika

Managing Director/CEO Deputy Chief Executive Officer
Valentine Katabira Boneventura Buhanga George Rwabajungu

Manager, Operations Manager, Planning & Investment; Manager, Finance, Accounts
& Maintenance & Sales
Frederick C. Zesooli Martin Erone Peter Igibolu

Manager, Human Resource Manager, Corporate Services Manager, ICT
& Administration
Edward Muganyizi William Nkemba

Manager, Internal Audit Manager, Projects Implementation

UETCL Board of Directors
Seated is the Board Chairman Mr. Peter Ucanda and Board member Ms Sarah Timarwa.
Standing right to left are Board members Mr. John Genda Walala, Mr. Denis Wamala
(Representing the company Secretary), MD/CEO Mr. Eriasi Kiyemba, Mr. Paul Mubiru, Mr.
Christopher Mugisha and Mr. Nicholas David Oluka.

Chairman’s Statement
General Overview
Our Dear Shareholders, on behalf of the Board it is my honor to
present to you an overview of the execution of our strategies
and performance during the year 2015.
The year under review was very challenging for the Power Sector,
characterized by slow growth in demand and depreciation of
the shilling against the dollar that impacted negatively on our
financial performance. Notwithstanding this, we continued
to engage in activities that ensured the existence of a robust
and resilient transmission grid to meet the power needs of the
Country and the region at large.
Power Supply Situation: depreciation of the shilling. Overall the company posted
During the year 2015, a total of 3,333.6 GWh was a net loss for the year of 96.62bn of which Shs82.9 bn is
purchased by the Company from various generation attributable to foreign exchange losses.
plants compared to 3,202.6 GWh purchased in 2014,
representing a growth of about 4.1%, which was below Policy and regulatory overview:
the expected growth of 10%. This was mainly due to the The Company operates in a dynamic business
slowdown in economic activity which in turn influenced environment influenced by macroeconomic, socio-
energy consumption. In addition, growth in Gross political, and regulatory factors among others. Provision
Domestic Product has relatively stagnated at 5.3% since of reliable and affordable electricity remains a top
the year 2013. priority for the government with significant funding
channeled towards development and refurbishment of
The Company continued to enjoy sustainable infrastructure and acceleration of generation expansion.
energy supply, with the costly thermal power Plants The increased attention from government has
contributing only 2.2% to the generation mix, Large continued to attract development partners including
Hydro Plants contributed 82.4%, Mini-hydros 8.9%, co- private investors seeking partnerships and opportunities
generation bagasse Plants 5.1% and Imports 1.5%. This is in the sector with focus on a long-run sustainability of
a step in the right direction towards achievement of the generation capacity in the country.
company’s vision, as well as fostering economic growth
in the country. Grid Infrastructure Development:
Accelerated grid infrastructure development continues
Financial Performance: to be the company’s strategic focus area, with the
The financial environment of the Company in 2015 was objective of ensuring timely execution of investments
equally very challenging. The financial performance was and promotion of new least cost power production to
constrained majorly by the deprecation of the shilling eliminate the socio-economic costs that accrue from load
against the United States Dollar by over 20%, from USh shedding and use of non-renewable energy sources due
2,779.7/US$ which was the base rate for the 2015 tariff to to lack of access to the main grid. The many investments
USh 3,357.1/US$ at the end of the year 2015. This greatly that are on-going and planned mean that UETCL needs
affected the cash flow situation of the company since stronger focus in the project implementation phase to
the Company receives its revenue in Uganda shillings meet the expectations of all stakeholders.
yet pays most of the power generators in Dollars.
Occupational Health and Safety:
Total revenue for the year was USh 788.3bn, a 5% increase Our adherence to health and safety principles continues
from 2014. However energy purchases cost were USh to be a priority. Staff are continuously advised on the
772.7bn, a 26% increase from 2014 majorly due to importance of safety and are required to perform their

activities in line with specified rules. I am happy to report Our immediate focus will be on fast-tracking the
that during the year, the Company did not register any implementation of ongoing and planned system
fatal accident. expansion and network upgrade projects to provide
transmission capacity for the expected increase in
Funding Partners: generation capacity as well as adopt strategies to
We acknowledge the support of our development improve system efficiency.
partners who have committed finances to enable UETCL
pursue the construction of various transmission line Dividends
projects and substations. These projects are required for Due to the need to set the company on a recovery path
the efficient transmission of power as well as evacuation from its current and previous operating losses, the Board
of power from the upcoming generation plants across of Directors, do not recommend payment of dividends
the country. to the Shareholders for the year ended 31st December
2015.
We are equally appreciative of Government of Uganda
for providing the counterpart funds for the acquisition of Conclusion:
the right of Way and Wayleaves through compensations On behalf of the Board, I would like to thank all the
and construction of houses for the vulnerable Project Independent Power Producers and Distributors, the
Affected Persons. Government of Uganda, Development partners and all
stakeholders who have continued to support the sector.
Future Outlook: On behalf of the Board, I also express sincere gratitude to
We anticipate that electricity demand will grow owing to the Management, Staff, Electricity Regulatory Authority,
increased economic activities including implementation Power generators, power distributors, development and
of energy intensive projects and through accelerated business partners for their support and contribution
customer connections. We recognize that availability towards the Company performance in the financial year
of adequate, reliable and affordable electricity is vital in 2015.
enhancing the country’s attractiveness to investors.
In this regard, in conjunction with government and our

development partners in the sector, we are investing
heavily in projects aimed at providing affordable
adequate generation, transmission and distribution
capacity. …………………………..
Peter Ucanda
As we move into the future, we remain focused on Chairman, Board of Director
strategies that enable us to take advantage of emerging
opportunities for business growth and sustainability.
Upgrade of Masaka West

220/132/33kV Substation

Report of the Managing Director/ CEO
During the past year, UETCL made great strides toward achieving our
Dear Shareholders,
vision ofItbeing
is mya distinct
leading pleasure
strategic tobusiness
presentpartner
to youinthetheannual
transmission
report
and single buyer business. It is well known that the demand for
for the year ended 31st December 2015. I have the pleasure
electricity
to not only in during
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year,throughout the toEastern African
report that we continued maintain our
region, isfocus
outstripping supply. All powerquality
utilities in the region including
on the delivery of high service, by progressively
UETCL have therefore
moreinitiated generation and transmission projects to
creating value for the Company and ultimately for the
increase shareholder.
capacity to meet the ever increasing demand for electricity.
As we continue
In the yearto consolidate
under review,thethe
company’s
demand objective of being
for electricity was
financially sustainablebelow
consistently and efficient in execution
the available of the
generation single and
capacity buyer and
hence
transmission business, I am very pleased to report that our Company
the country continued to enjoy surplus generation capacity,
continued to post positive financial results, with a net profit of Shs
16.3bn as compared to a net profit of Shs 25.4bn in the previous year.
Financial Performance
The Company pursues strategies focused on achieving
financial stability and sustainability and giving
reasonable return to shareholders for their investment.
In order to achieve these objectives, the Company
focuses on ensuring that cost-reflective electricity tariffs
are approved to meet revenue requirement, as well as
enhancing operational efficiency and reducing system
losses.
UETCL experienced significant cash-flow challenges

during the year, which was mainly attributable to the
depreciation of the shilling against the United States
Dollar. During the year, the shilling depreciated by over
20%, from a base rate of USh 2,779.7/US$ considered in
determination of the 2015 tariff to USh 3,357.1/US$ at the
end of the year 2015. This caused liquidity challenges for
the Company since the Company receives its revenue
in Uganda shillings yet pays most of the Independent
Power Producers (IPPs) in foreign currencies.
Overall the company posted a net loss for the year of
Total revenue during the year increased by 5%, to USh 96.62bn of which Shs82.9 bn is attributable to foreign
788.3bn, however energy purchase costs also increased exchange losses.
by over 26% to USh 772.7bn in 2015 mainly due to the
depreciation of the shilling.
The highest domestic demand registered

was 520.7MW recorded in December
2015, compared to 508.3MW registered
in November 2014 representing a 2.4%
growth, a lot lower than the expected
demand growth of 8-10%.

During the year, Government continued to fund the
capacity charges to the thermal power plants and this
amounted to Shs 75.97bn.
Operational Performance
Power Supply Situation
During the year 2015, optimized available generation
capacity consistently remained above power demand
with reserve margins for most of the time. The highest
registered total system demand including exports to
Tanzania and Kenya was 560.1MW compared to 549.8MW
in 2014. The highest domestic demand registered was
520.7MW recorded in December 2015, compared to
508.3MW registered in November 2014 representing
a 2.4% growth, a lot lower than the expected demand
growth of 8-10%.
Energy Sales Volume increased by 4% to 3,218.5 GWh
For the year 2015 there was no scheduled load shedding from 3,098.71 GWh in the previous year.
on account of generation capacity constraints as the
available generation outstripped demand all the time.
The isolated cases of load shedding in the year were
attributed mainly to distribution system constraints.
System Maintenance
Currently UETCL network has a total length of 1,616Km
consisting of 220kV, 132kV and 66kV transmission lines
and 17 Substations with a total capacity of about 1,000
MVA across the country.
In 2015, a total of 3,334.6 GWh was purchased from During the year, the network recorded an average
the various generators compared to 3,202.6 GWh system availability of 98.66% compared to 99.33% in
representing a growth of 4.1%. This was below the 2014. The slight drop in Grid availability for 2015 was
expected growth of 10% mainly due to constraints in primarily due to the shutdown of the Bujagali-Kawanda
the distribution infrastructure as well as lower than 1 transmission line to create a safe working area for
anticipated industrial/manufacturing activity during the contractors undertaking substation extension works at
year. the Bujagali switchyard.
The gross unsupplied energy due to transmission grid

faults was 2.8 GWh compared to 3.5 GWh in 2014, while
For the year 2015 there was no the gross unsupplied energy due to transmission grid
shutdowns was 2.1 GWh compared to 8.7 GWh in 2014.
scheduled load shedding on account
of generation capacity constraints as
Building a Robust Transmission Infrastructure
the available generation outstripped During the year under review, UETCL continued with the
demand all the time. implementation of several system improvement projects
aimed at expanding the infrastructure and enhancing
service delivery.

In order to attract further private participation in the power sector, UETCL is committed to expanding the grid as
demonstrated by the following projects that were at different stages of implementation by end of year 2015.
Expected Date
No Transmission Lines Related Substations Works and Capacity Financier
of operations
Bujagali Switch Yard
1 - 2X250MVA Bujagali Switchyard ad related Sub AfDB 2016
Upgrade 220kV/132kV
- Extension of 20MVA Mbarara North

Mbarara-Nkenda
2 - 2X10MVA Nkenda Substations by two 132 kV feeder bays, AfDB 2017
132kV, 160Km
- New Fort Portal Substation, 2x15/20MVA,
- Extension of existing Tororo and Lira Substations by

3 Tororo-Lira132kV, 260Km AfDB 2017
two132 kV feeder bays
Bujagali-Lessos (NELSAP) - Extension of Bujagali Switchyard and Extension of JICA &

4 2017
220/kV, 127Km existing Tororo Substation AfDB
Mbarara-Mirama (NELSAP) - New Mbarara 60 MVA & JICA &

5 2017
220/kV, 66Km - New Mirama 60MVA Substations AfDB
- Extension of existing Nkenda Substation,

Nkenda-FortPortal-Hoima - New 2X132/33 kV, 40MVA Hoima Substation; AFD &
6 2017
132kV, 234Km - Installation of control, protection and communication NORAD
equipment at Fort Portal
- Upgrade of Kawanda Substation to 220kV (2X250MVA),

Kawanda-Masaka
7 - Upgrage of Masaka Substation to 220kV (2X125MVA), IDA 2017
220kV, 137Km
- Installation of Shunt Reactors at Mbarara
- Upgrade of Kawanda Substation to 400kV (6 x 217 MVA

400/220/33kV)
Karuma-Interconnection EXIM Bank
8 - 40MVA Karuma Substation 2018
Project 400kV, 375 Km of China
- Lira Substation Expansion,
- 2 x 20MVA Olwiyo Substation
Isimba Interconnection - New 132/33 kV S/S Isimba with 132kV line bays and EXIM Bank
9 2018
132kV, 42Km - Extension 132 kV S/S Bujagali with 132kV line bays of China
- 2X32/40MVA Gulu S/S,

Lira-Gulu-Agago/
10 - Lira newly proposed S/S 2X32/40MVA, GoU 2018
Achwa132kV, 120Km
- Agago 132kV AIS switchyard extension
Opuyo-Moroto - Extension of 10MVA Opuyo Substation and

11 IDB 2018
132kV, 160Km - New 2X32/40MVA Moroto Substation
- New Kabale 2X32/40MVA Substation,

Mirama-Kabale
12 - Extension of Mirama Substation with 2 Overhead line IDB 2019
132kV, 85Km
Feeders
Mutundwe-Entebbe - 2X50MVA Entebbe Substation,
13 KFW 2019
132kV, 35Km - Extension and upgrade of Mutundwe by two line bays
Upgrade of 132/33kV - 3X40MVA Substation to improve reliability within the
14 JICA 2017
Queens way substation central Business District of K’la
Improve reliability at the following proposed industrial

substations
- 2X40MVA at Iganga Substation GOU/
15 Industrial Parks 2018
- 3X63MVA at Mukono Substation Exim Bank
- 3X40MVA at Luzira Substation
- 3X63MVA at Namanve Substation

Regional Grid Interconnection Projects: Future Outlook
The Company is also actively involved in various regional The future holds great promise for UETCL, with numerous
grid interconnection initiatives aimed at improving opportunities for business growth and expansion.
security of supply as well as accessing electricity from This is due to the large untapped hydro potential, the
regional markets. The objectives of these initiatives are many transmission lines projects under construction, as
optimization of the usage of energy resources available well as enabling policy framework, which will help to
in the region, as well as cross border power exchange. move towards a cost reflective tariff and elimination of
These projects are summarized below Government subsidy in the medium term.
Project Length (KMs) Expected Commissioning Date

Projects Committed for Construction
Bujagali-Tororo-Lessos 220 kV Line 127 2017
Mbarara-Mirama-Birembo 220 kV line 66 2017
Projects with Completed Feasibility Studies
Masaka-Mutukula-Mwanza 220 kV 85 2020
Projects for Feasibility Studies
Nkenda- Beni- Bunia 220 kV 70 2021
Karuma Nimule- Juba 400 kV 190 2021
Occupational Health and Safety In this regard, the Company during the year negotiated
The board and management of Uganda Electricity and executed 15 Power Purchase Agreements with
Transmission Company Limited is committed to total installed capacity of 877.09 MW to meet the future
providing quality and reliable bulk electricity in a manner power supply.
that upholds the Health and Safety of its employees,
customers, contractors and the public. In order to evacuate the above, the Company plans to
add onto the current grid, 4,140 Km of circuit length and
Through the Safety, Health and Environmental Policy in a total of 103 Transformers, with a total transformation
place, the company put in place measures, procedures capacity of 9,593 MVA in a total of 55 substations from
and practices to ensure that a safe working environment the current 17 substations between 2016 and 2021.
is created and maintained in line with all the national
statutory regulations. Measures have also been put
in place to promote environmental protection in all
transmission activities.
The employees and stakeholders including the general

public are always sensitized and empowered to be able
to anticipate, evaluate and respond to Health and Safety
risks appropriately to protect their lives, people around
them and their assets at all times.
The company maintained a zero fatality work

environment in 2015.
Project and System Management Challenges

Several challenges have presented themselves in the
execution and management of the projects and the
existing transmission network. The major challenges arise
from the acquisition of the right of way (ROW) corridor
with most Project Affected Persons rejecting the Chief ... the company put in place measures,
Government Valuer’s valuation, large and increasing procedures and practices to ensure a
project portfolio, inadequate staffing, vandalism of the safe working environment is created
towers, wayleaves encroachment and delayed release of and maintained in line with all the
Government counterpart funds to effect compensations national statutory regulations.
to the agreeable Project Affected Persons (PAPs). The
above have to a certain extent delayed timely execution
and completion of projects on budget and time.

Resources have been identified through funding by Development, the Board of Directors, the sector
Government, Development Partners and the tariff. Regulator, ERA, staff and all our development Partners
Strategic and Grid Development plans have been for the goodwill and constructive engagement we have
devised to expand the business and also improve quality had from them and their support to UETCL during yet
of service. These strategies, and the continued support another challenging year.
of the Board of Directors, the Government, Development
partners, loyal staff and other stakeholders, will propel
the Company to achieve its vision and licensed mandate.
Conclusion
On behalf of Management, I express my profound …………………………..

gratitude to the Government of Uganda, Sector Eriasi Kiyemba
Ministry, Ministry of Finance Planning and Economic Managing Director/CEO
Kawanda 220kV/132 substation

UETCL Present & Future Transmission
Network With Substations

Health, Safety & Environment
UETCL is committed to providing a safe and healthy workplace for all our employees. The Board
and Management of Uganda Electricity Transmission Company Limited regard the health and
safety of its employees, customers, contractors and the general public with utmost importance.
The Company strives to ensure that work is carried out by all stakeholders in a safe and proper
manner.
KEC engineers constructing the Kawanda

Masaka 220kV transmission line.
Accordingly management commits itself to ensure the (vi) That all accidents including near accidents and
following at all times: dangerous occurrences are investigated and
remedial action taken.
(i) The company provides a safe and healthy working
environment in which all employees, visitors and (vii) Pollution of the environment resulting from
contractors are aware of the need to observe safe Company activities is mitigated.
practices to prevent injury to themselves and
others. (viii) A Safety Rules and Regulations Manual is maintained
and made available to all employees
(ii) As a minimum to comply with statutory
requirements and company safety, health and (ix) The Company continually improves Safety, Health
environmental rules & regulations where these and Environmental programs and performance
exceed the statutory requirement. through periodic evaluation and implementation
of appropriate corrective and preventive actions.
(iii) There exist safe, healthy and environmentally sound
working procedures and practices, continually (x) There is an established Health & Safety Committee
monitoring their implementation for all workers, that consults in a cooperative spirit to identify and
workplaces and public interface points. resolve safety and health problems in support of
the Company’s Safety and Health programs and
(iv) Employees are adequately trained to efficiently regulations.
carry out their work in a safe, healthy and
environmentally friendly manner and that they are Management is vested with the full responsibility
made aware of any special safety requirements in of ensuring an effective healthy and safe working
their work area including emergency situations. environment in the Company. In addition, it is the
responsibility of employees, contractors, customers and
(v) Harmonious co-operation and communication is the general public to comply with all safety procedures
promoted between employees and management, and practices as established by the Company and take
ensuring that there is immediate implementation reasonable care at all times not to do anything or create
of viable suggestions related to health, safety and any condition that will endanger their lives, communities
the environment. around them and the assets of the Company.

Statement on Corporate Governance
Businesses operate in an increasingly fragile socio-political and economic environment

and adoption of good governance practice is core to ensuring the creation, protection and
enhancement of shareholder value and for sustainability of the business while taking into
account the interest of other stakeholders. Corporate governance entails the process and
structures used to direct and manage the business affairs of company, the respective roles of
the Board of Directors and management and the framework for internal controls.
It involves balancing the interests of the Company’s

many stakeholders, such as shareholders, directors, Business transactions involving Directors or their related
managers, customers, financiers, government and the parties are carried out at arm’s length. Directors are
community. required to disclose any transaction in which they have
interest and which would constitute a conflict of interest
The Directors and management of the Company regard and to abstain from voting when such matters are being
corporate governance as pivotal to the success of the considered.
business and are unreservedly committed to ensuring
that good corporate governance is practiced so that the
Responsibilities
company remains a sustainable and viable business of
global stature. This statement sets out the main corporate The chairman is primarily responsible for providing
governance practices and structures in the Company. leadership to the Board and ensuring that it is supplied
with sufficient information in a timely manner to enable
it to discharge its duties. The Managing Director is
Board manual, charter and code of conduct
responsible for the day to day management of the
The Board has in place a Board Charter, which sets out Company.
the collective and individual powers, duties, obligation,
responsibilities and liabilities of the Directors. The Board The primary responsibilities of the Board include:
charter seeks to ensure the effectiveness of each Director’s
contribution in the governance of the company by facilitating  Establishment of short and long-term goals of the
full and free exercise of independent judgment and professional Company and Strategic plans to achieve those
competencies. The Board of Directors of UETCL has the following goals;
roles:  Ensuring preparation of the annual financial
 Provide entrepreneurial leadership for the statements;
company within a framework of prudent and
effective risk management.  Approval and review of the annual budgets;
 Set the Company’s strategic goals  Setting and periodically reviewing key performance
indicators and management performance
 Make sure that necessary resources (material,
financial & human) are in place for the Company Directors have full access to the advice and services
to meet its objectives. of the Company Secretary, who is externally sourced.
To function effectively, the Board is given full and
 Set the Company’s values and standards timely access to relevant information. Training and
 Make sure that the Company’s obligations to its development of Directors and staff is an important
shareholders are understood and met part of our corporate strategy. Directors attend training
tailored to equip them with skills and knowledge that
Constitution of the Board of Directors they require in discharging their responsibilities.
The Board consists of seven Directors, including the

Managing Director /Chief Executive Officer. Six of the Board Workplan and Meetings
Directors are non-executive. Directors possess a broad The Board meets at least once a quarter or more
mix of skills, age, qualification, and experience required often in accordance with requirements of the business.
to direct the Company to achieve its strategic goals. Adequate notice is given for each Board meeting
Their biographies are shown on page 18-19. and Directors receive detailed papers on issues to

be discussed in good time before the meeting. The Board held a total of 16 full Board meetings, 4 Joint Board &
Management meetings, 13 Finance & Administration Committee meetings, 10 Technical Committee meetings and 7
Audit Committee meetings during the year, which were very well attended as shown below:-
MEETINGS ATTENDED IN 2015

MEMBERSHIP
(Total No. of Meetings = 16)
Mr. Peter Ucanda - Chairman 16
Mr. Eriasi Kiyemba- MD/CEO 15
Mr. John .G. Walala-Member 14
Mr. Nicholas Oluka - Member 16
Eng. Paul Mubiru - Member 14
Mr. Chris Mugisha - Member 11
Ms. Sarah Timarwa - Member 15
Mr. William K Kiryahika –Stand in for MD/CEO 4
Mr. Dennis Wamala - Secretary 16
Joint Board and Management Meetings

QUARTERLY REPORTING MEETINGS ATTENDED IN 2015
MEMBERSHIP
(Total No. of Meetings = 4)
Mr. P. Ucanda - Chairman 4
Mr. E. Kiyemba- MD/CEO 3
Mr. J.G. Walala-Member 3
Mr. Chris Mugisha- Member 4
Eng. P. Mubiru - Member 4
Mr. Nicholas Oluka - Member 4
Ms. S. Timarwa - Member 4
Mr. D. Wamala - Secretary 4
Board Committees
A number of standing committees exist in order to assist the Board and management fulfill their responsibilities.
Each committee operates within the ambit of defined terms of reference assigned to it by the Board. During the year,
the Board had the following standing committees..
Finance and Administration Committee

The committee’s mandate is;
a) To consider management proposals concerning staff strength, recruitment, confirmation, promotion,

deployment, development, procedures, discipline, and remuneration structure for staff in general, reviewing
the structure of the company and reporting relationships from time to time before they are presented to the
Board for consideration.
b) Supervise the Company’s finance discipline by examining financial plans, commitment performance, review
budget as presented by management, as well as the procurement policy and ensuring that final accounts are
presented and submitted for audit before they are presented to the Board for consideration.
c) Review supply chain for effective and efficient provision of goods, works and services, review the company’s
procurement plan, related financing plan cost saving initiatives and sourcing strategies.

During the year, the committee held a total of 13 meeting
MEETINGS ATTENDED IN 2015
MEMBERSHIP
(Total No. of Committee Meetings = 13)
Mr. P. Ucanda - Chairman 13

Mr. E. Kiyemba 8
Mr. Chirs Mugisha 8
Mr. J.G. Walala- Co-opted 2
Mr. William K Kiryahika stand in for MD/CEO 6
Mr. Nicholas Oluka – Co-opted 1
Mr. D. Wamala – Company Secretary 13
Technical Committee
The committee’s mandate is;
a) To oversee and consider proposals projects and monitor all projects and major construction/maintenance work
on all the Company’s undertakings before they are presented to the Board for consideration.
b) To review terms, capacity and compliance, renew expired power purchase agreements and review new power
purchase agreements
c) To review and consider proposals relating to the development and implementation of the company’s grid
development plan before such proposals are presented to the Board for consideration.
During the year, the committee held a total of 10 meetings
MEMBERSHIP MEETINGS ATTENDED IN 2015

Eng. Paul Mubiru- Chairman 10
Mr. E. Kiyemba 8
Ms. S. Timarwa 10
Mr. William K Kiryahika stand in for MD/CEO 2
Audit Committee
The committee operates within the ambit of defined terms of reference assigned to it by the Board. The terms are
contained in the Audit Committee Charter, and contain the following;
a) Review the policies and procedures established by Senior Management to assess and monitor implementation
of the company’s strategic business plan and the operating goals and objectives
b) Review with senior management and the external auditors on completion of the annual audit of the company’s
annual financial statements
c) Assess the fairness of the preliminary and interim statements and disclosures, and obtain explanations from
management and internal audit
During the year, the committee held a total of 7 meetings
MEMBERSHIP MEETINGS ATTENDED IN 2015

Mr. J.G. Walala - Chairman 6

Eng. P. Mubiru 6
Mr. N. Oluka 7

Executive Management Committee true and fair view of the state of affairs of the Company as at the
The executive Management Committee is chaired by end of the financial year, and of the statement of comprehensive
the Deputy Chief executive Officer and the membership income of the Company for the period. The Directors are
includes, in addition to the Managing Director, heads responsible for ensuring that suitable accounting policies are
of departments reporting to the Managing Director. consistently applied, supported by reasonable and prudent
The Committee meets at least twice a month to review judgments and estimates and those applicable accounting
performance, and to consider policy and business issues, standards are followed.
including strategic measures, while also reviewing
papers before they are presented to the Board for The Directors are responsible for ensuring that the Company
consideration and approval keeps proper accounting records, which disclose with reasonable
accuracy at any time the financial position of the Company and
Directors’ Remuneration enable them to ensure that the financial statements comply with
Directors are paid a monthly retainer and sitting the Companies Act. They also have the general responsibility of
allowance as set out by the shareholders. Details of safeguarding the assets of the Company and to prevent and
Directors’ remuneration are set out in the report on Page detect fraud and other irregularities.
94. The Directors’ fees payable each year are supposed to
be within the limits approved by the Shareholders. There Risk Management
were no Directors’ loans at any time during the year. The board adopted corporate governance as a strategic
response to risk management. In this regard, the
Internal Controls
Company has documented the processes of identifying
The Directors acknowledge their responsibility as set
and documenting its risk profile, rank and rate the
out on page 48 for the Company’s system of internal
risks and set in place mitigation and risk management
financial control, including taking reasonable steps to
strategies.
ensure that the systems are being maintained. Internal
control systems are designed to meet the particular
needs of the Company, and the risks to which it is
exposed with procedures intended to provide effective
internal controls. However such a system can only
…………………………..
provide reasonable, but not absolute, assurance against
Peter Ucanda
material misstatement
Chairman, Board of Directors
Accountability and Audit
Directors’ responsibilities in relation to financial
statements
In addition to the fiduciary duties and the duty to exercise care,

skill and diligence, the Company law requires the Directors to
prepare financial statements for each financial year, which give a
Engineering contractor
constructing a high voltage
transmission tower.

UETCL RISK STATEMENT FOR 2015
Risk Management and Control
Risk Management is a fundamental element of UTECL’s business at all levels and is embedded into
business planning and controlling processes of the company. The Company’s risk management
framework is managed by an oversight structure involving executive management and the Audit
Committee Generally the company recognises risk management as an integral component of
good management and governance.
The company has a risk register which is develped by but championed by Internal Audit Department headed
rigorous internal processes and consultations with by the Manager who technically reports to the Audit
departments,sections and units. The risk register is Committee of the Board and administratively to the
discussed by the executive management and then Managing Director/Chief Executive Officer.
approved by the Board.The company has put in place
a risk reporting mechanism where by all strategic Risk assessment during 2015
risks which may impede the company in achieving its During the year 2015, the company conducted an
objectives are reported on a quarterly basis to the Board annual risk assessment exercise that involved internal
for action. stakeholders in particular heads of departments,
sections and units within the company to brainstorm on
The company internal audit function independently the risks that could have an effect on UETCL operations.
audits the adequacy and effectiveness of the company’s The outcome was a risk register together with mitigation
risk management and control framework. Thereafter measures which were later approved by the Board.
the department reports its findings of the audit on a
quarterly basis to the Audit Committee of the Board and During the year management continued to implement
thereafter to the full Board. risk management strategies to mitigate the risks from
likelihood of occurrence and its impact.
Overtime due to the emergency of complex, challenging
internal and external risks management has had to However despite management efforts the company
adopt systematic and embedded risk management continued to be exposed to financial, foreign exchange,
framework. regulatory and wayleaves encroachment risks.
Responsibility for Risk Management Need for Continuous Improvement in Risk management
The Board of Directors of UETCL is committed to In order to improve decision making UETCL management
continually improving risk management framework, is systematically progressing towards making Risk
capabilities, and culture across the company so as to management to become completely an integral and
ensure the long-term growth and sustainability of the critical part of the total management and decision
business. The Company’s Board of Directors have the making processes of the company. The company
ultimate responsibility for risk management, which intends to procure software to continuously assist staff
includes setting the tone at the top and ensuring that update and monitor the risk register together with the
the risk management framework and internal controls mitigation measures.
are effectively implemented. It has delegated its risk-
related responsibilities primarily to the Audit committee Therefore risk management challenges over next few
focusing on all aspects of risk management. years could include developing a more integrated
framework and systematic approach for riskk
Business Strategy and Risk management management and mitigation which wil require financial
During the review of the corporate business plan 2015- investment.
2018 the company identified goals and objectives to be
achieved during the period with defined key success We also realise the need for a communication plan for
factors and key performance indicators. Therefore in line both internal and external stakeholders ,which plan
with good corporate governance, the company linked should address issues relating to both the risk itself and
and integrated systematic risk management within the process to manage it.
UETCL’s business strategy and operations.
Currently risk management is a collective responsibility Theres need for more effective internal and external

communication which is important to ensure that those to controls and opportunities that are translated into
responsible for implementing risk management, and actions. The framework will outline UETCL’s approach
those with a vested interest, understand the basis on as to identification, analysis, evaluation, treatment,
which decisions are made and why particular actions mitigation and monitoring of risks to achieving our key
are required. business objectives.
UETCL in particular intends to improve its Enterprise Therefore we have already begun this more sophisticated
wide Risk Management (ERM) framework consistent path and have come up with mid and long range plans
with the Committee of Sponsoring Organisations to implement an enterprise wide risk management
(COSO), a worldwide recommended Corporate program. Investment in risk management will generally
Governance approach. This framework further examines increase substantially in the coming years.
the alignment of UETCL’s objectives to risks, and the risks

Mbarara North 132/33kV substation
FINANCIAL STATEMENTS
AND THE REPORT OF THE
AUDITORS FOR THE YEAR
ENDED 31 DECEMBER 2015
38 Electricity Transmission Company Limited | ANNUAL REPORT

Uganda 2015 Electricity Transmission Company Limited | ANNUAL REPORT38
Uganda 2015
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2015

UGANDA ELECTRICITY TRANSMISSION COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2015
Note 2015 2014

Ushs’Mn Ushs’Mn
Restated
Revenue 7 788,321 750,328

Cost of sales 8 (772,743) (611,752)
Third party collection charges 9 (36,346) (59,330)
Gross (loss) / profit (20,768) 79,246
Other operating income 10 40,761 54,994

Total income 19,993 134,240
Expenses
Grid maintenance expenses 11 (7,222) (5,465)
Administrative expenses 12 (54,955) (81,686)
Foreign exchange losses (82,864) (25,017)
Operating (loss) / profit (125,048) 22,072
Finance costs 14 (759) (2,214)
(Loss) / profit before tax (125,807) 19,858

Income tax credit /(expense) 15(a) 29,191 (3,262)
(Loss) / profit for the year (96,616) 16,596
Other comprehensive income

Other comprehensive income not to be reclassified to
profit or loss in subsequent periods:
Fair value gain on revaluation of plant and equipment 16 (89) 149,501
Tax on fair value gain 27 (44,850)
Total other comprehensive income not to be
reclassified to profit or loss in subsequent periods (62) 104,651
Total comprehensive (loss) / income for the year,

net of tax (96,678) 121,247
Basic and diluted earnings per share 31 (840) 1,053

7
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2015
2015 2014 2013

Note UShs’Mn UShs’Mn UShs’Mn
ASSETS Restated Restated
Non-current assets
Property, plant & equipment 16 1,042,286 776,001 427,207
Prepaid operating lease rentals 17 19,119 19,671 26
Intangible assets 18 1,348 1,479 1,640
Deferred tax asset - - 7,034
1,062,753 797,151 435,907
Current assets
Current income tax recoverable 15(d) 4,069 2,256 -
Inventories 20 17,489 11,314 9,789
Trade and other receivables 21 346,696 243,499 284,547
Cash and bank balances 22 178,287 313,383 246,081
546,541 570,452 540,417
TOTAL ASSETS 1,609,294 1,367,603 976,324
EQUITY AND LIABILITIES
Equity
Issued capital 23 57,548 57,548 57,548
Capital pending allotment 24 331,059 331,059 -
Asset revaluation surplus 104,589 104,651 -
Accumulated losses (121,947) (25,331) (41,927)
371,249 467,927 15,621
Non-current liabilities
Deferred income tax liability 19 14,149 43,470 -
Government of Uganda contributions 25 257,299 209,743 225,449
Capital grants 26 102,868 55,470 68,199
Borrowings 27 453,703 236,139 326,461
828,019 544,822 620,109
Current liabilities
Current income tax payable 15(b) - - 2,388
Trade and other payables 28 408,145 352,891 336,346
Employee benefit obligations 29 1,881 1,963 1,860
410,026 354,854 340,594
TOTAL EQUITY AND LIABILITIES 1,609,294 1,367,603 976,324
The financial statements were approved by the Board of Directors on………………...2016 and
signed on its behalf by:
………………………….. ………………………
Director Director

8
STATEMENT OF CHANGES IN EQUITY
Capital Asset
Issued pending revaluation
capital Accumulated allotment surplus
Note 23 losses Note 24 Note 16 & 17 Total
Ushs’Mn Ushs’Mn Ushs’Mn Ushs’Mn Ushs’Mn
At 1 January 2013 57,548 (66,591) - - (9,043)

Profit for the year - 25,442 - - 25,442
Prior year adjustment (Note 34) - (778) - - (778)
Total comprehensive income (restated) - 24,664 - - 24,664
At 31 December 2013 (restated) 57,548 (41,927) - - 15,621
At 1 January 2014 (restated) 57,548 (41,927) - - 15,621
Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015

Profit for the year - 16,596 - - 16,596
Other comprehensive income net of tax (as previously stated) - - - 104,651 104,651
Total comprehensive income net of tax (restated) - 16,596 104,651 121,247
Contributions during the year - - 331,059 - 331,059
At 31 December 2014 (restated) 57,548 (25,331) 331,059 104,651 467,927
At 1 January 2015 57,548 (25,331) 331,059 104,651 467,927

Loss for the year - (96,616) - - (96,616)
Other comprehensive loss, net of tax - - - (62) (62)
Total comprehensive loss, net of tax - (96,616) - (62) (96,678)
At 31 December 2015 57,548 (121,947) 331,059 104,589 371,249
53
9
STATEMENT OF CHANGES IN EQUITY
Asset revaluation surplus
The asset revaluation surplus arose on revaluation of grid assets and buildings in 2014. The fair
value of the fixed assets was determined as at 31 January 2013 by Parsons Brinckerhoff Africa
(Pty) Limited, a South African engineering professional services consulting firm. However, the
whole exercise was finalised in the last quarter of 2013 and the amounts were incorporated in the
Company’s books of account on 01 January 2014 and adjusted at 01 January 2015 after various
reconciliations.
Capital pending allotment
During the Annual General Meeting held on 27 November 2014, the Shareholders of the Company
passed a resolution and authorised the conversion of loans and Government of Uganda
contributions (expended on completed and commissioned projects) into equity and the approved
amounts totalled Ushs 331,059 million.
10

STATEMENT OF CASH FLOWS
2015 2014
Note UShs’Mn UShs’Mn
Cash generated from operations 32 (81,170) 115,796

Income tax paid 15(d) (1,916) (2,253)
Net cash flows generated from operating activities (83,086) 113,543
Investing activities
Purchase of property, plant & equipment 16 (281,443) (233,078)
Purchase of intangible assets 18 (269) (240)
Purchase of leasehold land 17 - (3,763)
Proceeds from disposal of property, plant & equipment 6 139
Net cash flows used in investment activities (281,706) (236,942)
Financing activities
Government contributions received 25 47,556 25,150
Capital grant received 26(a) 27,367 24,025
Capital grant received 26(b) 11,399 -
Loans received 27 165,132 166,543
Net cash flows generated from financing activities 251,454 215,718
Net increase in cash and cash equivalents (113,338) 92,319

Cash and cash equivalents at 1 January 313,383 246,081
Net foreign exchange differences (21,758) (25,017)
Bank balances at 31 December 22 178,287 313,383
11
NOTES TO THE FINANCIAL STATEMENTS
1. COMPANY INFORMATION
Uganda Electricity Transmission Company Limited is incorporated in Uganda under the

Companies Act, 2012 of Uganda and the Public Enterprise Reform and Divestiture Act, as
a limited liability Company, and is domiciled in Uganda. The address of its registered office
is:
Uganda Electricity Transmission Company Limited

P.O. Box 7625 Kampala
Plot 10, Hannington Road
The Company is wholly owned by the Government of Uganda through the Minister of
Finance, Planning & Economic Development and the Minister of State for Privatisation,
Ministry of Finance, Planning and Economic Development.
The Company is licensed to operate and maintain high grid voltage transmission lines, as a
system operator and bulk power purchaser and seller in the local market. It is also licensed
to import and export power into and out of Uganda. Furthermore, it is licensed as a Public
Infrastructure Provider.
2. BASIS OF PREPARATION
The financial statements of Uganda Electricity Transmission Company Limited have been
prepared in accordance with International Financial Reporting Standards (IFRS) as issued
by the IASB and the Companies Act, 2012 of Uganda.
For purposes of reporting under the Companies Act, 2012 of Uganda, the balance sheet in
these financial statements is represented by the statement of financial position and the
profit and loss account is represented by the statement of comprehensive income.
The financial statements have been prepared on a historical cost basis, except for
certain assets and financial instruments that have been measured at fair value.
The financial statements are presented in Uganda shillings and all values are rounded to
the nearest million (Ushs’Mn) except when otherwise indicated.
12
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
3. CHANGES IN ACCOUNTING POLICIES
(a) Changes in accounting policies and disclosures
The accounting policies adopted are consistent with those used in the previous year.
Standards issued but not yet effective
The standards and interpretations that are issued but not yet effective up to the date of
issuance of the Company’s financial statements are disclosed below. These are the changes
that the Company reasonably expects will have an impact on its disclosures, financial position
or performance when applied at a future date. The Company intends to adopt these standards
and interpretations, if applicable, when they become effective.
IFRS 9 Financial Instruments

In July 2014, the IASB issued the final version of IFRS 9 Financial Instruments which reflects
all phases of the financial instruments project and replaces IAS 39 Financial Instruments:
Recognition and Measurement and all previous versions of IFRS 9. The standard introduces
new requirements for classification and measurement, impairment, and hedge accounting.
IFRS 9 is effective for annual periods beginning on or after 1 January 2018, with early
application permitted. Retrospective application is required, but comparative information is not
compulsory. Early application of previous versions of IFRS 9 (2009, 2010 and 2013) is
permitted if the date of initial application is before 1 February 2015. The adoption of IFRS 9 will
have an effect on the classification and measurement of the Company’s financial assets, but
no impact on the classification and measurement of the Company’s financial liabilities.
IFRS 15 Revenue from Contracts with Customers

IFRS 15 was issued in May 2014 and establishes a new five-step model that will apply to
revenue arising from contracts with customers. Under IFRS 15, revenue is recognised at an
amount that reflects the consideration to which an entity expects to be entitled in exchange for
transferring goods or services to a customer. The principles in IFRS 15 provide a more
structured approach to measuring and recognising revenue.
The new revenue standard is applicable to all entities and will supersede all current revenue
recognition requirements under IFRS. Either a full or modified retrospective application is
required for annual periods beginning on or after 1 January 2018 with early adoption
permitted. The Company is currently assessing the impact of IFRS 15 and plans to adopt the
new standard on the required effective date.
IAS 1 Disclosure Initiative – Amendments to IAS 1 - Effective for annual periods

beginning on or after 1 January 2016.
The amendments to IAS 1 Presentation of Financial Statements clarify, rather than

significantly change, existing IAS 1 requirements.
The amendments clarify:
 The materiality requirements in IAS 1

 That specific line items in the statement(s) of profit or loss and OCI and the statement
of financial position may be disaggregated
 That entities have flexibility as to the order in which they present the notes to financial
statements
13
3. CHANGES IN ACCOUNTING POLICIES
(a) Changes in accounting policies and disclosures (continued)
Standards issued but not yet effective (continued)
 That the share of OCI of associates and joint ventures accounted for using the equity
method must be presented in aggregate as a single line item, and classified between
those items that will or will not be subsequently reclassified to profit or loss
Furthermore, the amendments clarify the requirements that apply when additional
subtotals are presented in the statement of financial position and the statement(s) of
profit or loss and OCI.
Other amendments and new standards which have been issued but are not yet effective,
which the Company does not expect to have an impact on the financial statements, are
listed below:
 IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture – Amendments to IFRS 10 and IAS 281
 IFRS 11 Accounting for Acquisitions of Interests in Joint Operations – Amendments to
IFRS 111
 IFRS 14 Regulatory Deferral Accounts1
 IAS 16 and IAS 41 Agriculture: Bearer Plants – Amendments to IAS 16 and IAS 411
 IAS 27 Equity Method in Separate Financial Statements – Amendments to IAS 271
 Improvements to International Financial Reporting Standards: 2012-2014 cycle (issued
in September 2014)1
1
Effective for annual periods beginning on or after 1 January 2016.
4. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the Company’s financial statements requires management to make

judgements, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these assumptions and estimates could result
in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods.
Judgements
In the process of applying the Company’s accounting policies, management has made
the following judgements, which have the most significant effect on the amounts
recognised in the financial statements:
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty
at the reporting date, that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year, are described below.
The Company based its assumptions and estimates on parameters available when the
financial statements were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market changes or circumstances arising that
are beyond the control of the Company. Such changes are reflected in the assumptions
when they occur.
14
4. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

(CONTINUED)
Revaluation of property, plant and equipment

The Company measures its grid assets and land and buildings at revalued amounts with
changes in fair value being recognised in OCI. The grid assets and land and buildings were
valued by reference to market-based evidence, using comparable prices adjusted for
specific market factors such as nature, location and condition of the assets.
Fair value of financial instruments

Where the fair value of the financial assets and financial liabilities recorded in the
statement of financial position cannot be determined from active markets, they are
determined using valuation techniques including discounted cash flow model. The inputs
to these models are taken from observable markets where possible, but where this is not
feasible, a degree of judgment is required in establishing fair values. The judgments
include considerations of inputs such as credit risk and volatility. Changes in
assumptions about these factors could affect the reported fair value of financial
instruments.
Impairment losses on receivables

The Company reviews its debts at each reporting date to assess whether an allowance for
impairment should be recorded in the statement of comprehensive income. In particular,
judgment by management is required in the estimation of the amount and timing of future cash
flows when determining the level of allowance required. Such estimates are based on
assumptions about a number of factors and actual may differ, resulting in future changes to
the allowance.
Property, plant and equipment

Estimates of residual values are made by management in addition to the estimates of
expected useful lives of property and equipment.
The depreciation method reflects the pattern in which economic benefits attributable to the
asset flows to the entity. The useful lives of these assets can vary depending on a variety of
factors, including but not limited to technological obsolescence, maintenance programs,
refurbishments, product life cycles and the intention of management.
Residual values of an asset are determined by estimating the amount that the entity would
currently obtain from the disposal of the asset, after deducting the estimated cost of disposal, if
the asset were already of age and in a condition expected at the end of its useful life.
The estimation of the useful life and residual values of an asset is a matter of judgment based
on the past experience of the entity with similar assets and the intention of management.

15
5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow
to the Company and the revenue can be reliably measured. Revenue is recognised at the
fair value of consideration received or receivable taking into account contractually defined
terms of payment and excluding taxes or duty. The following specific recognition criteria
must be met before revenue is recognised:
 Optical fibre:
Income is recognised upon leasing of cores to the customers and represents amounts
billed excluding Value Added Tax or any other Government levies.
 Energy sales:
Income is recognised upon billing of energy supplied to the distributors and represents
amounts billed excluding Value Added Tax (VAT) or any other Government levies. The
billing is done for each monthly billing cycle based on the units supplied as read on the
boundary metres and at approved Bulk Supply Tariff (BST) rates.
 Government grants and subsidies:

Government capital grants are recognised in the Statement of Financial Position and
amortized over the periods necessary to match them with the depreciation costs related
with the corresponding assets, on a systematic basis.
Government subsidies comprise of reimbursements received from the Government of

Uganda towards capacity payments to power suppliers and are recognised
as income in the Income Statement under Government of Uganda subsidies.
Revenue grants are presented as a credit in profit or loss under Statnett grant income.
 Grant income
Grant income relates to the amortized value of assets acquired through capital grants.
Such assets are depreciated over their useful life and the corresponding amortised
amount is credited to the income statement.
 Interest income:
Interest income is accrued on a time basis, by reference to the principal outstanding and
at the interest rate applicable unless collectability is in doubt.
(b) Accounting for leases
Leases are classified as finance leases whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee. All other leases are
classified as operating leases.

16
5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c) Property, plant and equipment
Property, plant and equipment is stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. Such cost includes the cost of replacing part of the
plant and equipment and borrowing costs for long-term construction projects if the
recognition criteria are met.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated
with the item will flow to the Company and the cost can be reliably measured. The carrying
amount of the replaced part is derecognised. All other repairs and maintenance are
charged to the income statement during the financial period in which they are incurred.
Land, buildings and assets are measured at fair value less accumulated depreciation on
buildings and grid assets and impairment losses recognised at the date of revaluation. A
revaluation surplus is recorded in OCI and credited to the asset revaluation surplus in
equity. Upon disposal, any revaluation reserve relating to the particular asset being sold is
transferred to retained earnings.
The Company has also elected to transfer the revaluation surplus to retained earnings in full,
upon disposal of the assets.
Depreciation is calculated on the straight line basis to write down the cost of each
asset, or the revalued amount, to its residual value over its estimated useful life using the
percentage (%) rates and or useful life:
(%)
Transmission line – Wooden 2.2
Transmission lines – Metallic 2.0
Substations and related infrastructure 2.0
Pole plant and related infrastructure 20.0
Office machinery and equipment 20
Furniture & fittings 12.5
Buildings 1.7
Communication equipment 5.0
Computer equipment 33.3
Scada Equipment 6.6
Motor vehicles (Sedan) 20
Motor vehicles (Heavy) 10
Tools and equipment 12.5
Leasehold Over the lease period
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at
each statement of financial position date. An asset’s carrying amount is written down
immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount.
Gains and losses on disposal of property, plant and equipment are determined by
comparing the proceeds with the carrying amount and are taken into account in determining
operating profit/loss.
Uganda Electricity Transmission Company Limited | ANNUAL REPORT17

2015 61
(d) Capital work in progress
All assets that are under construction or assembling in a project nature are classified as
work in progress. Capital work in progress is included as part of property, plant and
equipment and comprises of costs incurred on ongoing capital works relating to
transmission lines and internal works. These costs include materials, transport,
resettlement action plans, consultancies and labour costs incurred. When the project is
completed the related assets are transferred to property, plant and equipment. Capital work
in progress is not depreciated.
(e) Intangible assets
Intangible assets with finite useful lives that are acquired separately (software) are carried
at cost less accumulated amortisation and accumulated impairment losses. Amortisation is
recognised on a straight-line basis over their estimated useful lives. The estimated useful
life and amortisation method are reviewed at the end of each reporting period, with the
effect of any changes in estimate being accounted for on a prospective basis. Intangible
assets with indefinite useful lives that are acquired separately are carried at cost less
accumulated impairment losses
De-recognition of intangible assets:

An intangible asset is derecognised on disposal, or when no future economic benefits are
expected from use or disposal. Gains or losses arising from derecognition of an intangible
asset, measured as the difference between the net disposal proceeds and the carrying
amount of the asset, are recognised in profit or loss when the asset is derecognised.
(f) Impairment of non-financial assets
The Company assesses, at each reporting date, whether there is an indication that an
asset may be impaired. If any indication exists, or when annual impairment testing for an
asset is required, the Company estimates the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value
less costs of disposal and its value in use. The recoverable amount is determined for an
individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. When the carrying amount of
an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.
For impairment of transmission lines and substations, a decline in the value of

transmission lines would have a significant effect on the amounts recognised in the
financial statements. Management assesses the impairment of the lines whenever events
or changes in circumstances indicate that the carrying value may not be recoverable.
Factors that are considered important which could make an impairment review necessary
include the following:
 Significant decline in the market value beyond that which would be expected from the
passage of time and normal use.
 Evidence from internal reporting that may indicate that the performance of the asset is
or would be worse than expected.
 Significant changes with the adverse effect on the Company have taken place during the
period, or will take place in the near future, in the technology or market environment in
which the Company operates.
 The carrying amount of the net assets is more than its market capitalisation.
 Evidence is available of the obsolescence or physical damage of an asset.
62 18 Electricity Transmission Company Limited | ANNUAL REPORT 2015

Uganda
(f) Impairment of non-financial assets (continued)
 Significant changes with an adverse effect on the Company have taken place during the
period or are expected to take place in the near future which will impact the manner or
the extent an asset is used. These changes include plans to discontinue or restructure
the operation to which an asset belongs or to dispose of an asset before the previously
expected date. Management may reinforce, replace or upgrade transmission lines,
substations and other installations after assessing evidence of the above key indicators
of impairment.
Where an impairment loss subsequently reverses, the carrying amount of the asset is
increased to the revised estimate of its recoverable amount, but so that the increased
carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss been recognised for the asset in prior years. A reversal of an
impairment loss is recognised immediately in profit or loss, unless the relevant asset is
carried at a revalued amount, in which case the reversal of the impairment loss is
treated as a revaluation increase.
(g) Inventories
The Company’s inventories consist mainly of consumables and are valued at the lower of
cost and net realisable value. Cost is determined on the weighted average basis and
includes transport, taxes and handling costs. Provision is made for obsolescent, slow
moving and defective inventories.
Goods-in-transit
These are stated at cost.
(h) Translation in foreign currencies
Assets and liabilities expressed in foreign currencies are translated into Uganda shillings at
the rate of exchange ruling at the end of each reporting period. Transactions during the year
are converted at the rates ruling at the dates of the transactions. Gains and losses on
exchange are dealt with in the income statement.

19
(i) Taxation
The income tax expense for the year comprises current and deferred income tax. Income
tax expense is recognised in the statement of comprehensive income, except to the extent
that it relates to items recognised in other comprehensive income, in which case the
income tax expense is also recognised in other comprehensive income.
Current income tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from
profit as reported in the statement of comprehensive income because of items of income or
expense that are taxable or deductible in other years and items that are never taxable or
deductible.
Tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws
used to compute the amount are those that are enacted or substantively enacted by the
reporting date.
Income tax relating to items recognized in other comprehensive income or equity is

recognized in other comprehensive income or equity and not in profit or loss.
Deferred income tax

Deferred income tax is provided using the liability method on temporary differences at the
reporting date between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
Deferred income tax liabilities are recognized for all taxable temporary differences, except
where the deferred income tax liability arises from goodwill amortization or the initial
recognition of an asset or liability and, at the time of the transaction, affects neither the
accounting profit or the loss and except where the timing of the reversal of the temporary
differences can be controlled and it is probable that the temporary differences will not reverse
in the foreseeable future.
Deferred income taxes are recognized for all deductible temporary differences, carry forward
of unused tax assets and unused tax losses, to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences and the carry
forward of unused tax assets and unused tax losses can be utilized; except where the
deferred income tax asset relating to the deductible temporary differences arises from initial
recognition of an asset or liability and at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss; and deferred tax assets are only recognized to
the extent that it is probable that the temporary differences will reverse in the foreseeable
future and tax profit will be available against which the temporary differences can be utilized.
The carrying amount of deferred income tax assets is reviewed at each reporting date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available
to allow all or part of the deferred income tax asset to be utilized.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to
apply to the year when the asset is realized or the liability is settled based on tax rates (tax
laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognized in other comprehensive income or equity is

recognized in other comprehensive income or equity and not in profit or loss.

Uganda
(j) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
Financial assets and liabilities are recognised when the Company becomes a party to the
contractual provisions of the instrument.
i) Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets
not recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset.
Purchases or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the market place (regular way trades) are
recognised on the trade date, i.e., the date that the Company commits to purchase or sell
the asset.
The Company’s financial instruments include trade and other receivables and cash and
bank balances.
Subsequent measurement
The Company’s financial assets are non-derivative financial assets with fixed or
determinable payments. After initial measurement, the Company’s financial assets are
measured at amortised cost using the EIR, less impairment. Amortised cost is calculated by
taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included as finance income in the statement
of comprehensive income. The losses arising from impairment are recognised in the
statement of comprehensive income.
Trade receivables
Trade receivables are initially recognised at fair value and subsequently measured at
amortised cost using the effective interest rate method
An estimate of provision is made against doubtful receivables based on a review of all

outstanding amounts at the year end. Bad debts are written off during the year in which
they are identified. The movement in the provision is recognised in the statement of
comprehensive income.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i.e., removed from the Company’s statement of
financial position) when the rights to receive cash flows from the asset have expired or the
Company has transferred its rights to receive cash flows from the asset.
Uganda Electricity Transmission Company Limited | ANNUAL REPORT

212015 65
(j) Financial instruments (continued)
Impairment of financial assets
The Company assesses, at each reporting date, whether there is objective evidence
that a financial asset or a group of financial assets is impaired. An impairment exists if
one or more events that has occurred since the initial recognition of the asset (an
incurred ‘loss event’), has an impact on the estimated future cash flows of the
financial asset or the group of financial assets that can be reliably estimated.
Evidence of impairment may include indications that the debtors or a group of debtors
is experiencing significant financial difficulty, default or delinquency in interest or
principal payments, the probability that they will enter bankruptcy or other financial
reorganisation and observable data indicating that there is a measurable decrease in
the estimated future cash flows, such as changes in arrears or economic conditions
that correlate with defaults.
Financial assets carried at amortised cost

For financial assets carried at amortised cost, the Company first assesses whether
impairment exists individually for financial assets that are individually significant, or
collectively for financial assets that are not individually significant. If the Company
determines that no objective evidence of impairment exists for an individually
assessed financial asset, whether significant or not, it includes the asset in a group of
financial assets with similar credit risk characteristics and collectively assesses them
for impairment. Assets that are individually assessed for impairment and for which an
impairment loss is, or continues to be, recognised are not included in a collective
assessment of impairment.
The amount of any impairment loss identified is measured as the difference between
the asset’s carrying amount and the present value of estimated future cash flows
(excluding future expected credit losses that have not yet been incurred). The present
value of the estimated future cash flows is discounted at the financial asset’s original
effective interest rate.
The carrying amount of the asset is reduced through the use of an allowance account
and the loss is recognised in the statement of comprehensive income.
ii) Financial liabilities
Financial liabilities are classified according to the substance of the contractual arrangements
entered into and the definitions of a financial liability.
All financial liabilities are recognised initially at fair value and, in the case of borrowings and
payables, net of directly attributable transaction costs. The Company’s financial liabilities
include trade and other payables and borrowings.
Subsequent measurement
After initial recognition, the Company’s financial liabilities are subsequently measured at
amortised cost using the EIR method. Gains and losses are recognised in profit or loss
when the liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortisation is included as
finance costs in the statement of comprehensive income.
66 22
(j) Financial instruments (continued)
ii) Financial liabilities (continued)
Subsequent measurement (continued)
Borrowings
After initial recognition, interest bearing loans and borrowings are subsequently measured at
amortised cost using the effective interest rate method. Amortised cost is calculated by
taking into account any issue cost and any discount or premium on settlement. Finance
charges including premiums payable on settlement or redemption are accounted for on an
accrual basis and are added to the carrying amount of the instrument to the extent that they
are not settled in the period in which they arise. Loan interest accruing during the
construction of a project is capitalised as part of the cost of the project.
Trade payables
Trade payables are stated at their nominal value.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit or loss.
iii) Offsetting financial instruments:
Financial assets and liabilities are offset and the net amount presented in the statement of
financial position when there is a legally enforceable right to offset the amounts and there is
an intention to settle on a net basis, or to realise the asset and settle the liability
simultaneously.
(k) Provisions
Provisions are recognised when the Company has a present legal or constructive obligation
as a result of past events, it is probable that an outflow of resources will be required to settle
the obligation, and are reliable estimate of the amount can be made. When the Company
expects a provision to be reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only when the reimbursement is
virtually certain.
(l) National Social Security Fund
The Company contributes to the statutory retirement benefit scheme established under the
National Social Security Fund (NSSF) Act. This is a defined contribution scheme under
which the Company contributes 10% of the employees’ salaries. The Company's
contribution during the year is charged to the statement of comprehensive income.
232015
(m) Other employee benefits
Employee entitlements to gratuity and leave pay are recognised when these accrue to
employees. A provision is made for the estimated liability for such entitlements as a result of
service rendered by employees up to the end of each reporting period.
(n) Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at banks and
on hand.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash
and cash equivalents, as defined above.
(o) Share capital and equity
Ordinary shares are classified as equity. An equity instrument is any contract that evidences a
residual interest in the assets of any entity after deducting all its liabilities. Incremental costs
directly attributable to the issue of equity instruments are shown in equity as a deduction from
the proceeds, net of tax.
(p) Dividends
The Company recognises a liability to make cash distributions to shareholders when the
distribution is authorised and the distribution is no longer at the secretion of the Company.
As per the corporate laws in Uganda, a distribution is authorised when it is approved by the
shareholders. A corresponding amount is recognised directly in equity and the approved
dividends are recognised as liabilities until when paid.
(q) Comparatives
Where necessary, comparative figures have been adjusted to conform to changes in

presentation of the financial statements in the current year.
(r) Government of Uganda Contributions
Funds received from the GoU to settle persons affected by the project in the process of the
company’s implementing its projects are recognised as a non-current liability until when the
related projects are completed. On completion of the projects, the related contributions are
converted into equity.

24
6. FINANCIAL RISK MANAGEMENT
The main risks arising from the Company’s financial instruments are market risk, credit risk
and liquidity risk. Market risk is comprised of foreign exchange risk and interest rate risk.
The Board of Directors reviews and agrees policies for managing each of these risks as
summarised below:
The Company’s overall risk management programme focuses on the identification,

management of risks and seeks to minimise potential adverse effects on its financial
performance, by application of agreed tariff levels with the Electricity Regulatory Authority,
purchase/sale agreements with its Independent Power Producers (IPPs), distributors, and
Government.
(a) Credit risk
The Company takes on exposure to credit risk, which is the financial exposure generated by
the potential default of third parties in fulfilling their obligations. Impairment provisions are
made for losses that are anticipated at the statement of financial position date.
Uganda Electricity Transmission Company credit risk is primarily attributable to its trade and
other receivables and amounts due from related parties, estimated by management based
on prior experience, existing financial and economic factors faced by the debtor and the
debtors’ exit options available.
The maximum exposure to credit risk represents a worst case scenario of credit risk
exposure to the Company at the comparative end of reporting periods, without taking
account of any collateral held or other associated credit enhancements. For assets carried
on the statement of financial position, this exposure is based on net carrying amounts as
reported. No credit risk exists on cash and bank because counter-parties are banks with
high credit ratings.
The following table summarises the Company’s maximum exposure to credit risk before
collateral held.
2015 2014
Ushs’Mn Ushs’Mn
Trade and other receivables
Trade receivables including related parties (Note 21) 315,031 252,332

Provision for doubtful accounts (26,194) (44,528)
288,837 207,804
25
6 Financial Risk Management
(a) Credit risk (continued)
The table below analyses the Company's financial assets into relevant maturity groupings
based on the remaining period at the statement of financial position date to the contractual
maturity date. The amounts disclosed in the table are the contractual undiscounted cash
flows. Balances due within 12 months equal their carrying balances as the impact of
discounting is not significant.
Total Fully Past Impaired

performing due
Ushs’Mn Ushs’Mn Ushs’Mn Ushs’Mn
As at 31 December 2015
Financial assets
Cash 178,287 178,287 - -
Other receivables 57,859 57,859 - -
Trade receivables including related parties 315,031 288,837 - 26,194
As at 31 December 2014
Financial assets
Cash and cash equivalents 313,383 313,383 - -
Other receivables 35,695 35,695 - -
Trade receivables including related parties 252,332 207,804 - 44,528
There exist power sales agreements with power distributors that the Company invokes to
facilitate collection of debt in case of any default or delay in payment on account of the power
distribution companies.
(b) Currency risk
The Company undertakes certain transactions denominated in foreign currencies and holds
monetary assets and liabilities in foreign denominated currencies.
A significant portion of the company’s currency risk arises from borrowings and trade
payables, which are denominated in foreign currency. Foreign exchange spot rates are
negotiated with bankers on a competitive basis. The Company’s exposure to foreign exchange
risk is also mitigated through a provision in the tariff methodology that allows for adjustment for
foreign exchange rate movements on a quarterly basis.
The Company’s profit after income tax and equity would decrease/increase by Ushs 4,143
million (2014: Ushs 1,251 million) respectively were the Ushs: US$ exchange rate to
increase/decrease respectively by 5%.

26
6 Financial Risk Management (Continued)
(b) Currency risk ( Continued)
The Company had the following significant foreign currency positions:
USD Euro Other Total

At 31 December 2015
Financial assets
Cash and bank balances 60,021 3 - 60,024
Trade and other receivables 16,938 - - 16,938
76,959 3 - 76,962
Financial liabilities
Trade and other payables 181,010 28,255 - 209,265
Borrowings 453,703 - - 453,703
634,713 28,255 - 662,968
Overall net position (557,754) (28,252) - (586,006)
At 31 December 2014
Total financial assets 83,904 112 - 84,016

Total financial liabilities 357,189 10,169 - 367,358
Overall net position (273,285) (10,057) - (283,342)
(c) Liquidity risk
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which
has built an appropriate liquidity risk management framework for the management of the
Company's short, medium and long-term funding and liquidity management requirements. The
Company manages liquidity risk through continuously monitoring forecasts and matching the
maturity profiles of financial liabilities and ongoing review of future commitments and credit
facilities available to the Company. The Company through Government of Uganda actively
solicits for funding facilities to match the demands of its investment (grid expansion)
programmes.
27 2015
(c) Liquidity risk (Continued)
The table below analyses assets and liabilities into relevant maturity periods based on the
remaining period at the statement of financial position date. Balances equal their carrying
balances as the impact of discounting is not significant.
Up to 1 2-3 4-12 1-5 Over 5 Total

month months months years years
Ushs’Mn Ushs’Mn Ushs’Mn Ushs’Mn Ushs’Mn Ushs’Mn
At 31 December 2015
Financial assets
Cash and bank balances 178,287 - - - - 178,287
Trade receivables including
50,758 139,582 63,446 35,052 - 288,837
related parties
Other receivables 20,083 16,066 4,017 15,974 - 56,140
249,127 155,648 67,463 51,026 - 523,264
Financial liabilities
Trade payables 52,272 78,297 130,495 - - 261,065
Borrowings - - - - 453,703 453,703
Employee benefit obligations 1,316 376 189 - - 1,881
Other payables 29,021 74,527 43,532 - - 147,080
82,609 153,200 174,217 - 453,703 863,729
Net liquidity gap 166,518 2,448 (106,754) 51,026 (453,703) (340,465)
At 31 December 2014
Total financial assets 349,870 92,103 43,153 71,481 - 556,607

Total financial liabilities 71,952 130,838 152,064 - 236,139 590,993
Net liquidity gap 277,918 (38,735) (108,911) 71,481 (236,139) (34,386)
(d) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Company’s short term financial
liabilities are interest free. The Company also has interest bearing loans but these do not
present a material interest rate risk exposure to the Company given the fact the rates at which
interest is charged are fixed.
28

(e) Fair value measurement
The fair value of the financial assets and liabilities is included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a
forced or liquidation sale. The fair value of the financial assets and liabilities approximates to
their respective carrying amounts as explained below:
The following methods and assumptions were used to estimate the fair values:
 Cash and short-term deposits, trade receivables, trade payables and other current
financial assets and liabilities approximate their carrying amounts largely due to the short-
term maturities of these instruments.
 Long-term financial instruments: The interest rates charged on or used to value these
instruments are based on the prevailing market interest rates. The fair value of the
instruments is determined by using the DCF method using discount rates that reflect the
observable market interest rates. The non-performance risk as at the reporting date was
assessed to be insignificant.
Fair value hierarchy

IFRS 13 requires a three tiered disclosure for all financial assets and financial liabilities that
are carried in the books of entities at fair value. This fair value disclosure is divided into three
levels as follows:
 Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities
e.g. quoted equity securities.
 Level 2 – inputs other than quoted prices included within Level 1 that are observable for
the asset or liability either directly (e.g. prices) or indirectly (e.g. derived from prices).
 Level 3 – inputs for the asset or liability that are not based on observable market data.
These items are not Level 1 products and contain at least one significant input
parameter which could not be price tested from any of the methods described for level 2
products. Examples are products where correlation is a significant input parameter and
products where there is severe illiquidity in the markets for a prolonged period of time.
The following table provides the fair value measurement hierarchy of the Company’s assets
and liabilities that are measured at fair value
Fair value measurement using

Date Quoted
of prices in Significant Significant
valuation active observable unobservable
Markets inputs inputs
Total (level 1) (level 2) (level 3)
Property, plant &

equipment 31 Dec 2015 428,333 295,606 132,727 -
Prepaid operating
lease rentals 31 Dec 2015 20,223 3,763 16,434 -
29

(e) Fair value measurement (continued)
Fair value measurement using

Date Quoted
of prices in Significant Significant
valuation active observable unobservable
Markets inputs inputs
Total (level 1) (level 2) (level 3)
Property, plant &
equipment 31 Dec 2014 413,266 280,539 132,727 -
Prepaid operating
lease rentals 31 Dec 2014 20,223 3,763 16,434 -
Property plant and equipment includes land and buildings, Scada equipment,
Communication equipment, Plant and machinery that were revalued.
There are no other nonfinancial assets and liabilities that are measured at fair value.
The Company also did not hold any financial assets or liabilities measured at fair value at the
reporting date.
(f) Capital management
The Company’s objectives when managing capital are:
i) To safeguard the Company’s ability to continue as a going concern, so that it can

continue to provide returns for shareholders and benefits for other stakeholders; and
ii) To maintain a strong capital base to support the development of its business.
The Company monitors capital using a gearing ratio, which is computed as net debt divided
by total capital plus net debt. The Company includes within net debt, interest bearing
borrowings, employee benefits obligations and trade and other payables, less cash and cash
equivalents. Capital includes equity attributable to the equity holders of the Company.
The Company aims to maintain a gearing ratio of 50%. The Company’s gearing ratio as at 31
December 2015 was 70% (2014: 46%) as shown in the table below:
2015 2014
Ushs’Mn Ushs’Mn
Interest bearing borrowings (note 27) 453,703 236,139

Trade and other payables (notes 28, 29) 410,026 354,854
Less: cash and short-term deposits excluding committed fund (note
22) (64,847) (185,785)
Net debt 798,882 405,208
Total equity 371,249 467,927
Net debt and capital 1,170,131 873,135
Gearing ratio 68% 46%
30
(f) Capital management (continued)
The Committed funds have been excluded because these are earmarked solely for
implementation of projects, and cannot therefore be used in the settlement of the company’s
trade and other liabilities and loans.
31
2015 2014
UShs’Mn UShs’Mn
7 Revenue
Energy sales: Local

Umeme Limited 723,092 654,491
Other local distributors 11,169 7,535
Energy sales: Exports
Kenya 35,013 74,408
Tanzania 17,849 12,721
Others 1,198 1,173
788,321 750,328
8 Cost of sales
Energy purchases - Eskom 52,744 35,401

Energy purchases – Kasese Cobalt Company Limited 10,814 9,092
Energy purchases - Kenya Power Lighting Company Limited 27,407 17,867
Energy purchases - Jacobsen 33,933 46,968
Energy purchases - ElectroMax 80,937 71,499
Energy purchases -Tronder Bugoye 21,681 19,192
Energy purchases - Bujagali Energy Limited 516,728 380,407
Energy purchases - Kakira 48,476 47,753
Energy purchases - Hydromaxx Limited 16,022 15,663
Energy purchases - Africa EMS Mpanga 22,681 19,308
Energy purchases - Eco Power Uganda Limited 5,989 6,036
Energy purchases - Other energy generators 11,303 8,727
848,715 677,913
Government of Uganda subsidies (75,972) (66,161)
772,743 611,752
Government of Uganda subsidies relate to reimbursements received or receivable from the

Ministry of
Finance for payment of available capacity charged by the power suppliers.
2015 2014
9 Third party collection charges Ushs‘Mn Ushs‘Mn
Rural electrification levy 36,618 28,991

Generation levy 162 264
Electricity Regulatory Authority funds: Over recoveries/clawbacks (434) 30,075
Total 36,346 59,330
Rural electrification levy

As per the Electricity Act, a charge of 5% of the local energy costs excluding cost of imported
power and capacity charges is collected and remitted to Rural Electrification Agency (REA) to
fund rural electrification schemes.
Generation levy
This relates to a 0.03% charge on exported energy. This is collected and paid to Electricity
Regulation Authority (ERA).
32
9 Third party collection charges (Continued)
Electricity Regulatory Authority funds: Over recoveries /claw backs
These represent amounts enshrined in the tariff structure that are collected and deployed as
per Electricity Regulatory Authority (‘ERA’ or ‘the Authority’) instructions. The Company is
required deposit these funds on a tariff stabilisation fund account until ERA instructs the
Company on how to use the funds.
2015 2014
Ushs‘Mn Ushs‘Mn
10 Other operating income
Line rental 2,471 2,030
Sale of bid documents 28 32
Lease of optic fibre 7,311 6,513
Property rentals 350 381
Bad debts recovered 18,334 -
Write back of UEGCL payable 10(a) - 30,987
Bank interest 10(b) 11,554 14,091
Grant income: Statnett funds 10(c) - 838
Grant income: Amortization of capital grants 26(b) 42 -
Other incomes 671 122
40,761 54,994
a) Write back of amounts due to Uganda Electricity Generation Company Limited

(UEGCL)balance
During the year ended 31 December 2014, a resolution was passed at the an Annual
General Meeting to write back an amount of Ushs 30,987 million that was previously
recognised as a payable to Uganda Electricity Generation Company Limited (UEGCL).
The amount arose in the year 2001 when Government intervened in the tariff much later
after billing at the approved ERA rates and the rebate had already been extended to end
user power consumers.
Therefore, UETCL was not able to pay UEGCL, following failure to collect from UEDCL
who had in turn failed to collect from the end user consumers.
b) Bank interest
This relates to interest earned by the Company on bank deposits in the various financial
institutions.
c) Grant Income: Statnett funds

The Norwegian Government and UETCL came into agreement to fund training activities
through Statnett, aimed at improving employee skills and knowledge through research.
d) Amortization of capital grants
The amount relates to the amortized value of the Government of Uganda grant worth
Ushs11,399 million in respect to Rugonjo 33/132kv substation. The grant was received
during the year and is amortized over the useful life of the substation.
33
2015 2014
Ushs ‘Mn Ushs ‘Mn
11 Grid maintenance costs
Substations maintenance 1,152 598

Software system (SCADA) maintenance 837 552
Transmission lines 3,274 3,144
Other grid maintenance costs 1,959 1,171
7,222 5,465
The above costs relate to expenses incurred in the maintenance of the various constituent
grid elements.
2015 2014
12 Administrative expenses
Staff costs (note 13) 27,631 25,676
Transport costs 1,961 1,879
Maintenance costs 972 623
Licenses 1,291 757
Consultancy 965 740
Audit fees 102 104
Provision for doubtful debts - 26,181
Depreciation and amortization 14,974 15,950
Other administration costs 7,059 9,776
54,955 81,686
13 Staff costs
Salaries & wages 12,431 11,331
Staff gratuity 2,077 3,288
National Social Security contributions 3,556 1,963
Other staff related costs 9,567 9,094
27,631 25,676
14 Finance costs
Interest expense - 1,312
Bank /guarantee charges 759 902
759 2,214
78 34Electricity Transmission Company Limited | ANNUAL REPORT 2015

Uganda
15 Taxation
2015 2014
(a) Income tax expense Ushs‘Mn Ushs‘Mn
Prior year income tax over provision - (2,391)

Current year income tax charge 103 -
Deferred income tax charge/(credit) (note 19) (29,294) 5,653
(29,191) 3,262
The income tax charged relates to rental income. No income tax has been charged in
respect to the core business of power purchase and sales because the Company had
accumulated tax losses of Ushs. 257,069 billion as at 31 December 2015 (2014: Ushs
142.5 billion). The tax losses will be carried forward and utilised against future taxable
profits in accordance with the Income Tax Act.
(b) (Loss) /profit before tax
This is arrived at after charging/ (crediting) the following:
2015 2014
Directors fees 507 167
Depreciation and amortisation 14,915 15,950
Auditors’ remuneration 92 92
Unrealised foreign exchange losses 82,863 41,865
Unrealised foreign exchange gains - (16,848)
(c) Reconciliation of the income tax expense
The reconciliation between the income tax expense and the product of accounting profit
and the tax rate is as follows:
2015 2014
Ushs
‘Mn Ushs ‘Mn
Profit /(Loss) before tax (125,807) 19,586
Tax calculated at a tax rate of 30% (2013: 30%) (37,742) 5,876
Tax effect of:

Expenses not deductible for tax purposes 44,669 27
Prior year deferred tax under-provision - (250)
Tax effect of capital allowances & non-taxable income (40,096) -
Current year deferred tax credit (29,294) -
Tax losses 33,272 -
Prior year income tax over provision - (2,391)
Income tax expense/(credit) (29,191) 3,262
35
15 Taxation (Continued)
2015 2014
(d) Current income tax recoverable
At 1 January 2,256 (2,388)

Withholding tax paid 1,854 2,210
Prior year income tax over provision - 2,391
Tax charge for the year (103) -
Tax paid 62 43
At 31 December 4,069 2,256
36
Uganda 2015
Uganda 80
Electricity Transmission Company Limited | ANNUAL REPORT 2015
Uganda
16 Property, plant and equipment

SCADA Communic Furniture Tools & Compute Office Capital
Land & Equipm- Plant & ation & equip Motor r Equip Mach- Work in
Buildings ent machinery equipment Fittings ment vehicles ment inery progress Total
Asset UShs’Mn UShs’Mn UShs’Mn UShs’Mn UShs’Mn UShs’Mn UShs’Mn UShs’Mn Ushs’Mn UShs’Mn UShs’Mn
Cost or valuation
At 1 Jan 2013 24,414 9,985 459,503 15,757 1,099 6,184 8,556 4,750 1,073 53,585 584,906
Additions 56 439 108 320 118 423 2,519 526 221 90,944 95,674
Prior year adjustment
(Note 34) - (3,479) - - - - - - - - (3,479)
Disposals - - (743) - - (10) - - - - (753)
At 31 December 2013 24,470 6,945 458,868 16,077 1,217 6,597 11,075 5,276 1,294 144,529 676,348
Additions - 227 3,204 686 58 770 3,401 889 155 223,688 233,078
Revaluation adjustment 30,820 1,731 96,678 3,498 - - - - - - 132,727
Transfers from CWIP - - 3,361 972 - - 2 - 46 (4,381) -
Reclassifications - 182 - - - (449) - (30) - 297 -

Elimination adjustment (2,267) (2,992) (215,098) (8,537) - - - - - - (228,894)
Uganda
Disposals - - (2,204) (3,355) (3) - (603) (8) - - (6,173)
2015
At 31 December 2014
(restated) 53,023 6,093 344,809 9,341 1,272 6,918 13,875 6,127 1,495 364,133 807,086
Additions 801 1,710 9,580 3,267 185 1,123 2,414 716 292 261,355 281,443
Revaluation adjustment - - (291) - - - 202 - - - (89)
Disposals - (746) (41) (555) (139) (1,739) - (1,624) (405) - (5,249)
At 31 December 2015 53,824 7,057 354,057 12,053 1,318 6,302 16,491 5,219 1,382 625,488 1,083,191
Depreciation
At 1 January 2013 1,773 5,766 208,004 10,458 564 3,411 5,962 2,243 623 - 238,804
Charge for the year 494 705 7,150 1,434 109 560 1,738 760 147 - 13,097
Prior year adjustment
(Note 34) (2,701) (2,701)
Disposals - - (56) - - (3) - - - - (59)
At 31 December 2013
(restated) 2,267 3,770 215,098 11,892 673 3,968 7,700 3,003 770 - 249,141
81
Electricity Transmission Company Limited | ANNUAL REPORT 2015
37
82
16 Property, plant and equipment (continued)
SCADA Communic Furniture Tools & Computer Office Capital

Land & equipme Plant & ation & equip Motor equip Mach- Work in
Buildings nt machinery equipment Fittings ment vehicles ment inery progress Total
UShs’Mn UShs’Mn UShs’Mn UShs’Mn UShs’Mn UShs’Mn UShs’Mn UShs’Mn UShs’M UShs’Mn UShs’Mn
Asset n
At 31 December 2013
(restated) 2,267 3,770 215,098 11,892 673 3,968 7,700 3,003 770 - 249,141
Charge for the year 445 601 9,324 665 113 612 770 2,275 192 - 14,997
Reclassifications - 6 16 212 - (247) 2 (14) 25 - -
Elimination adjustment (1,829) (3,770) (215,098) (8,538) - - - - - - (229,235)
Disposals - - - (3,355) (2) - (456) (5) - - (3,818)
At 31 December 2014 883 607 9,340 876 784 4,333 8,016 5,259 987 - 31,085
Charge for the year 435 636 9,467 853 120 527 1,452 332 209 - 14,031
Disposals - (213) (2) (302) (138) (1,600) 32 (1,593) (395) - (4,211)
At 31 December 2015 1,318 1,030 18,805 1,427 766 3,260 9,500 3,998 801 - 40,905
Net book value

At 31 December 2015 52,506 6,027 335,252 10,626 552 3,042 6,991 1,221 581 625,488 1,042,286
At 31 December 2014
(restated) 52,140 5,486 335,469 8,465 488 2,585 5,859 868 508 364,133 776,001
At 31 December 2013
(restated) 22,203 3,175 243,770 4,185 544 2,629 3,375 2,273 524 144,529 427,207
On 3 September 2015, the Company was granted instruments of ownership by the Uganda Government for Rugonjo 33/132kv substation valued at Ushs
11.4 billion that was constructed by the Rural Electrification Agency to facilitate evacuation of power from Mpanga Hydro Generation Plant.

38
Revaluation of assets
The revalued assets consist of land and buildings and grid assets.
The fair value of the assets was determined as at 31 January 2013 by Parsons Brinckerhoff
Africa (Pty) Limited, a South African engineering professional services consulting firm.
However, the final report was issued in July 2014 and the required adjustments were
incorporated into the Company’s books of account effective 01 January 2014. The fair value of
grid assets was based on depreciated replacement cost values, having considered long-term
trends in world metal prices. The fair value of the rest of the assets was based on prevailing
market prices determined among others by assets’ condition, location, and use. Fair value
disclosures for the revalued assets are provided in note 6(e).
Revaluation adjustment
The revaluation adjustment relates to the revaluation gain that arose as the difference
between the carrying amount of the assets before revaluation and the fair value as at the
revaluation date.
Elimination adjustment
This relates to the accumulated depreciation as at the revaluation date that was eliminated
against the gross carrying amounts of the revalued assets.
Depreciation charge for the year
Included in the depreciation charge for the year is Ushs 42 million (2014: NIL) charged on
assets acquired through Government of Uganda capital grant. The same amount has been
amortised against the capital grant value (Note 26(b)).
Net carrying value of buildings and grid assets at cost:
If the land and buildings and grid assets were measured using the cost model, the carrying
amounts would be as follows:
2015 Land & Scada Plant & Communic Total

buildings Equipment machinery ation
equipment
Cost 25,271 9,064 472,517 17,647 524,499

Accumulated depreciation (3,511) (5,412) (238,492) (14,942) (262,357)
Net carrying amount 21,760 3,652 234,025 2,705 262,142
2014 Land & Scada Plant & Communic Total

buildings Equipment machinery ation
equipment
Cost 24,470 7,354 463,229 14,380 509,433

Accumulated depreciation
(2,879) (4,505) (226,679) (11,413) (245,476)
Net carrying amount 21,591 2,849 236,550 2,967 263,957
39
Capital-work in progress
Capital work in progress represents accumulated costs incurred in the execution of various
grid expansion projects.
Capitalised borrowing costs
The Company is in the process of implementing various grid expansion projects. The
construction of the assets is financed by borrowings from Government of Uganda .The amount
of borrowing costs capitalised during the year ended 31 December 2015 was Ushs 2.83 billion
(2014: Ushs 1.46 billion).
2015 2014
Ushs’Mn Ushs’Mn
17 Prepaid operating lease rentals
Cost
At 1 January 20,223 33
Additions - 3,763
Revaluation adjustment - 16,434
Elimination adjustment - (7)
At 31 December 20,223 20,223
Amortization
At 1 January 552 7
Charge for the year 552 552
Elimination adjustment - (7)
At 31 December 1,104 552
Net carrying amount

At 31 December 19,119 19,671
The operating lease prepayment represents rentals paid by the Company for parcels of
leasehold land. The lease rentals are paid in full at the inception of the lease and the
Company amortises the amount over the lease period on a straight line basis.
The fair value of the leases was determined as at 31 January 2013 by Parsons Brinckerhoff
Africa (Pty) Limited, a South African engineering professional services consulting firm.
However, the final report was issued in July 2014 and the required adjustments were
incorporated into the Company’s books of account effective 01 January 2014. The fair value
values were based on prevailing market prices determined among others by assets’
condition, location and use.
Revaluation adjustment
The revaluation adjustment relates to the revaluation gain that arose as the difference
between the carrying amount of the leases before revaluation and the fair value as at the
revaluation date.
Elimination adjustment
This relates to the accumulated amortisation as at the revaluation date that was eliminated
against the gross carrying amounts of the revalued leases.

Uganda
2015 2014
Ushs’Mn Ushs’Mn
18 Intangible assets
Cost
At 1 January 4,220 3,980
Additions 269 240
Disposals (180) -
At 31 December 4,309 4,220
Amortization
At 1 January 2,741 2,340
Charge for the year 391 401
Disposals (171) -
At 31 December 2,961 2,741
Net book value

At 31 December 1,348 1,479
The intangible assets comprise of softwares including: SCADA software, Eagle Point
software, Printing Traffic software, transmission software, Road base Software, Software
Disturbance Recorder Valpro Recpro, among others.
19 Deferred income tax
Deferred tax is calculated, in full, on all temporary timing differences under the liability method
using a principal tax rate of 30% (2014: 30%) The movement on the deferred tax account is
as follows:
2015 2014
Ushs’Mn Ushs’Mn
Deferred income tax liability/(asset)
As at 1 January 43,470 (7,034)
Increase / (decrease) (29,321) 50,504
As at 31 December 14,149 43,470
Deferred income tax liabilities/(assets) and the deferred income tax expense in the statement
of comprehensive income are attributable to the following:
As at Charge/(credit) As at 31
1 January to profit Charge December
2015 or loss To OCI 2015
Accelerated tax depreciation –

property, plant & equipment 67,284 316 - 67,600
Bad and doubtful debts provision (13,358) 5,500 - (7,858)
Net foreign exchange losses (11,695) (1,838) - (13,533)
Fair value gains 44,850 - (27) 44,823
Tax losses carried forward (43,611) (33,272) - (76,883)
Net deferred income tax (asset)

/ liability 43,470 (29,294) (27) 14,149

2015 85
19 Deferred income tax (continued)
As at Charge/(credit) Charge As at 31
1 January to profit to OCI December
2014 or loss 2014
Accelerated tax depreciation –

property, plant & equipment 66,994 290 - 67,284
Bad and doubtful debts provision (16,548) 3,190 - (13,358)
Net foreign exchange losses (5,411) (6,284) - (11,695)
Fair value gains - - 44,850 44,850
Tax losses carried forward (52,069) 8,458 - (43,611)
Net deferred income tax asset (7,034) 5,654 44,850 43,470
2015 2014
20 Inventories Ushs’Mn Ushs’Mn
Stores stock 7,454 5,790

Scrap 3,201 2,303
Spares for plant and machinery 10,720 6,426
21,375 14,519
Less: provision for obsolete inventories (3,886) (3,205)
17,489 11,314
21 Trade and other receivables
Trade receivables 215,847 205,489

Provision for doubtful accounts (26,194) (44,528)
189,653 160,961
Due from related parties (note 21(c)) 99,184 46,843
288,837 207,804
Prepayments 1,719 1,369
Sundry receivables 56,140 34,326
346,696 243,499
Trade receivables are generally on 45 day terms interest bearing if they are not settled within
45 days after the invoice date. The provision for bad debts relates to customers with unpaid
balances due to unmet terms and conditions of the power sales agreement.
2015 2014
Ushs’Mn Ushs’Mn
a) Movement in the provision for bad and doubtful debts
At 1 January 44,528 18,347
Impairment loss for the year - 26,194
Recoveries from bad and doubtful debts (18,334) (13)
At 31 December 26,194 44,528
Debtors past 45 days are considered past due but not impaired. Refer to note 6 (a), which
explains how the Company manages and measures credit quality of trade receivables that
are neither past due nor impaired.

Uganda
21 Trade and other receivables (Continued)
b) As at 31 December , the ageing analysis of trade receivables is as follows:

2015 2014
Ushs’Mn Ushs’Mn
Neither past due nor impaired < 45 days 189,653 160,961

Past due but not impaired > 45 days but less
than 120 days - -
Over 120 days and impaired 26,194 44,528
215,847 205,489
c) Receivables from related parties
Name Nature of relationship
Uganda Electricity Distribution Company Limited Shareholding

Government of Uganda Shareholding
The following were the transactions carried out with related parties and the balances as at 31
December 2015. Transactions with related parties relate to mainly purchase and sale of
power.
2015 At 1 Power At 31
January Sales/ Payments December
Related Party 2015 purchases /funding 2015
Uganda Electricity Distribution
Company Limited 503 3,372 (3,300) 575
Government of Uganda 46,340 76,341 (24,072) 98,609
Total 46,843 79,713 (27,372) 99,184
Included in amounts due from Government of Uganda is Ushs 45,340 million which was
utilised by UETCL, with consent and commitment of Government, to pay pension arrears of
former Employees of Uganda Electricity Board (UEB) and power generators during the
power crisis of 2011 .The amounts used to pay power generators ought to have been paid
to Rural Electrification Agency since it had been collected as a levy through the tariff . It
also includes a subsidy receivable of Ushs 53,269 million for capacity charges due from
Government at year end and pension arrears paid to former Employees of Uganda
Electricity Board (UEB) which Government had committed to refund.
2014 At 1 Power Write off/ At 31

January Sales/ Payments recoveries December
Related Party 2014 purchases /funding 2014
Uganda Electricity Distribution
Company Limited 37,466 1,657 (1,807) (36,813) 503
Government of Uganda 73,271 65,879 (72,013) (20,797) 46,340
Uganda Electricity Generation (36,813) - - 36,813 -
Company Limited
Total 73,924 67,536 (73,820) (20,797) 46,843
43

21 Trade and other receivables (continued)
c) Receivables from related parties (continued)
In 2014, a resolution was passed at the Company’s Annual General Meeting, authorising
the Company to write off Ushs 36,813 million previously receivable from Uganda Electricity
Distribution Company Limited (UEDCL). The amount arose in the year 2001 when
Government intervened in the tariff much later after billing at approved ERA rates and
rebates had already been extended to end user power consumers. Hence UEDCL was not
able to pay UETCL, following UEDCL’s failure to collect from the end user consumers.
The Ushs 46,340 million due from Government of Uganda represents amounts utilised by
UETCL, with consent of Government, to pay power generators during the power crisis of
2011 .The amounts used to pay power generators ought to have been paid to Rural
Electrification Agency since it had been collected as a levy through the tariff. It also
includes a subsidy receivable of Ushs 1,000 million for capacity charges due from
Government at year end and pension arrears paid to former Employees of Uganda
Electricity Board (UEB) which Government had committed to refund.
Government of Uganda write off

The recovery of Ushs 20,797 million relates to the amount collected through the tariff as
debt service but was offset against accrued interest on loans after the shareholders
resolved in the Annual General Meeting held on 27 November 2014 to convert debt and
Government of Uganda contributions (expended on completed and commissioned projects)
into equity and that all accrued net interest relating to completed projects be eliminated
from the Company’s books.
2015 2014
Ushs’Mn Ushs’Mn
22 Bank balances
Operations Balances:
Standard Chartered Bank Uganda Limited 30,037 76,653
Citibank Uganda Limited 3,287 13,960
Stanbic Bank Uganda Limited 2,209 433
Barclays Bank Uganda Limited 29,334 94,739
64,867 185,785
Committed funds: Bank of Uganda Project Accounts
Cash balances relating to grants – note 33(a) 38,600 44,709
Cash balances relating to loans – note 33(b) 20,273 12,689
Cash balances relating to Government of Uganda Contributions –
note 33(c) 54,547 70,200
113,420 127,598
Total bank balances 178,287 313,383
Committed funds: Bank of Uganda Project Accounts
The above funds relate to loans, contributions and grants received from Government of
Uganda by UETCL as an implementing agent, to manage the various ongoing power
projects (grid expansion projects). These funds are maintained in Bank of Uganda and the
terms of use stipulate that the money can only be used to implement projects activities and
not any other activities. Therefore, these funds have been committed to the implementation
of specific project activities.

Uganda
2015 2014
23 Issued capital Ushs’Mn Ushs’Mn
Authorised, issued and fully paid
115,095,810 ordinary shares of Ushs 500 each 57,548 57,548
24 Capital pending allotment
Contributions during the year

662,118,210 ordinary shares of Ushs 500 each (un-allotted) 331,059 331,059
During the year ended 31 December 2014, the shareholders contributed Ushs 331,059
million as capital pending allotment, following the conversion from debt and Government
contributions of balances relating to completed projects. The conversion is represented by
662,118,210 shares at a par value of Ushs 500.The conversion arose out of a
shareholders’ resolution to convert debt and Government contributions relating to
completed and commissioned projects into equity. The related shares were yet to be
allotted as at the reporting date.
The amounts converted to equity are made up as follows:
2015 2014
Ushs‘Mn Ushs‘Mn
Interest on borrowings (note 27) - 32,506

Borrowings - principal (note 27) - 241,740
Capital grants (note 26) - 36,754
Amounts due from Government (note 21) - (20,797)
Government contributions (note 25) - 40,856
Total - 331,059
In the Company’s Annual General Meeting held on 27 November 2014, the shareholders of
the Company resolved that all funds received from Government as loans, grants and RAP
funds for on-going projects shall be converted into equity when the on-going projects for
which the funds are remitted to the company are completed and commissioned.
Consequently, loans, grants and Government contributions were capitalized as capital
pending allotment. The interest component of Ushs 20,797 million was recovered from the
amounts due from the Government.
2015 2014
25 Government of Uganda contributions Ushs‘Mn Ushs‘Mn
At 1 January 209,743 225,449

Contributions received during the year 47,556 25,150
Amounts converted to equity during the year - (40,856)
257,299 209,743
The contributions from Government of Uganda relate to funds remitted to the Company for
Resettlement Action Plans (RAP) and compensations to Project Affected Persons (PAPs)
during the acquisition of wayleaves and construction of Transmission lines and related
infrastructure. In 2014, the shareholders resolved to convert Government of Uganda
contributions equivalent to Ushs 40,856 million incurred on completed and commissioned
projects into equity.

2015 89
2015 2014
Ushs‘Mn Ushs‘Mn
26 (a) Capital grants
Norwegian Agency for Development (NORAD) 90,178 54,257

Swedish International Development Association 1,333 1,213
Government of Uganda 11,357 -
102,868 55,470
Norwegian Agency for Development (NORAD)

On 21 November 2001, an agreement for Norwegian Kroner 60 million was signed
between the Government of Uganda and the Government of the Royal Kingdom of
Norway through the Norwegian Agency for Development (NORAD), regarding financial
assistance for rehabilitation of 133/33/11 KV substations and improvement of reliability of
the grid network. The grants which related to completed and commissioned projects were
converted into equity.
The Government of Norway through NORAD extended a grant Norwegian Kroner 300
million for the construction of Nkenda-Hoima Transmission line, Norwegian Kroner 7
million for the feasibility study of Hoima-Kafu Transmission line, Norwegian Kroner 14.6
million for the feasibility study for the Karuma Interconnection and Norwegian Kroner 9
million for feasibility study of Mirama-Kikagati -Nshongyenzi transmission line project.
Capital grants worth Ushs 36 million that existed as at 31 December 2013 were converted
into equity (note 24).
Capital grant from Government of Uganda

On 3 September 2015, the Company was granted instruments of ownership by the Uganda
Government for Rugonjo 33/132kv substation valued at Ushs 11,399 million that was
constructed by the Rural Electrification Agency to facilitate evacuation of power from
Mpanga Hydro Generation Plant.
The overall movement in capital grants during the year was as follows:
2015 2014
Ushs’Mn Ushs’Mn
At 1 January 55,470 68,199

Cash received during the year 27,367 24,025
Capital grant from Government of Uganda - Note 26(b) 11,357 -
Foreign exchange losses 8,674 -
Amounts converted to equity during the year - (36,754)
At 31 December 102,868 55,470
2015 2014
26(b) Capital grant from Government of Uganda Ushs’Mn Ushs’Mn
Assets acquired 11,399 -

Amortisation (42) -
11,357 -

Uganda
27 Borrowings
(a) Borrowings comprise of the following as at 31 December

2015:
Accrued
Principal Interest Total
Ushs’Mn Ushs’Mn Ushs’Mn
International Development Association 91,764 528 92,292
African Development Bank 220,738 2,684 223,422
Japanese Bank of International Co-operation 126,917 17 126,934
French Development Agency 10,001 1,054 11,055
449,420 4,283 453,703
Accrued
31 December 2014 Principal Interest Total
International Development Association 30,851 138 30,989
African Development Bank 137,580 1,037 138,617
Japanese Bank of International Co-operation 57,934 7 57,941
French Development Agency 8,310 282 8,592
234,675 1,464 236,139
The existing loans are all non-current because these have a payment grace period of 20
years from the draw down date and all the loans were first drawdown in 2012. In addition
the shareholder/lender has no intention to recover both the principal amounts and accrued
interest in the foreseeable future. The movement during the year was as follows:
2015 2014
UShs’Mn UShs’Mn
At 1 January 236,139 326,461

Cash drawdowns and direct contractor payments 165,132 166,543
Additional interest payable 2,819 2,776
Foreign exchange losses 49,613 14,605
Interest converted to equity - (32,506)
Principal converted to equity - (241,740)
At 31 December 453,703 236,139
Government of Uganda Loans (Vested Loans)
An amount equivalent to US$ 21,701,000 was transferred from the Government of Uganda
as a vested loan to Uganda Electricity Transmission Company Limited on 1st January 2002
and payment was due in full on or before 31 December 2016. The loan was at an interest
rate of 7.1% per annum and was not secured. The outstanding principal and accrued
interest, equivalent to US$ 27.74 million was converted into equity during the year ended 31
December 2014.
NORDIC Development Fund Loan
A loan agreement of Euro 12.7 million was signed between the Government of Uganda
and the Nordic Development Fund on 24 January 2002 to finance the upgrade of the
SCADA and telecommunication systems and rehabilitation of Lira, Lugazi, Masaka West
and Mbarara North substations. The loans received were unsecured and interest was
charged at a rate of 0.75% per annum. The outstanding loan balance equivalent to US$
21.94 million was converted into equity in 2014.
47
27 Borrowings (continued)
African Development Bank and Japanese Bank of International Co-operation
A loan agreement was signed on 1 October 2007 between the Government of Uganda,
the African Development Bank, Japanese Bank for International Development for the
construction of Bujagali - Kawanda, Mutundwe - Kawanda line and Kawanda Substation and
upgrade of Bujagali switch to 220KV. Financing of the project amounted to JPY 3,484 million
and Ushs 44 billion from JBIC, AFDB and Government of Uganda respectively. The loans
received were unsecured loans and the interest rate was 0.75% per annum for African
Development Bank and 0.01% per annum for the loans from the Japanese Bank of
International Co-operation. Except the loan component for the Bujagali Switch Yard upgrade
and some residual compensation on Bujagali-Kawanda Line, a substantial part of the loan,
equivalent to Ushs 55 billion was converted into equity during the previous year.
African Development Bank
A loan agreement was signed on 13 May 2009 between the Government of Uganda and
African Development Fund to provide financing in various currencies equivalent to Units of
Account 7,590,000 for the construction of Mbarara - Mirama / Bujagali – Tororo – Lessos
and associated substations.
Another loan agreement was signed on 13 May 2009 between the Government of Uganda
and African Development Bank to provide funding in various currencies equivalent to Units
of Account 52,510,000 for Mbarara / Nkenda and Tororo / Lira transmission lines. The
loans received were unsecured and the interest rate is 0.75% per annum.
French Development Agency
A loan agreement was signed on 13 October 2013 between the French Development
Agency and the Government of Uganda to provide funding amounting to US$ 23,000,000
for the Mputa interconnection project. The loan is at an interest rate of 7.13% per annum
and was not secured.
The International Development Association/World Bank agreed to extend to the GoU

development credit in various currencies equivalent to Special Drawing Rights (SDR)
5,085,432, or an amount equivalent to US$ 6,004,420.59. This amount was on lent to
Company by GoU and was to be repaid within 7 years at an interest rate 7.1% per annum.
The outstanding loan and accrued interest was converted into equity in 2014.
International Development Association Loan
A loan agreement was signed between the Government of Uganda and the International
Development Association under the Electricity Sector Development project to provide
financing in various currencies equivalent to special Drawing Rights 74,100,000 to fund
Kawanda – Masaka Transmission line and related sub-stations.
Japanese Bank of International Co-operation
On 26 March 2010 a loan agreement was signed between the Government of Uganda and
Japan International Cooperation Agency to provide financing of up to Japanese Yen
5,406,000 for the construction of Mbarara - Mirama / Bujagali – Tororo – Lessos
transmission Line and associated substations.
All the loans/grants are on-lent to Uganda Electricity Transmission Company by GoU to
implement various projects.

Uganda
2015 2014
28 Trade and other payables Ushs’Mn Ushs’Mn
Trade payables 261,065 230,006

Accruals 3,407 4,049
Other payables 143,673 118,836
408,145 352,891
The amount of Ushs 261,065 million includes Ushs 70,000 million in respect of outstanding
value added tax to thermal power generators the resolution of which awaits Government /
Uganda Revenue Authority pronouncement on the matter.
(a) Due to related parties
Name Nature of relationship
Uganda Electricity Generation Company Limited Common shareholders

Uganda Electricity Distribution Company Limited Common shareholders
The following were the transactions carried out with related parties and the balances as at
31 December 2015. Transactions with related parties relate to mainly purchase of power.
At 1 Power Payments At 31
January sales /funding Write-offs December
31 December 2015
Uganda Electricity
Generation Company Limited - - - - -
31 December 2014
Uganda Electricity
Generation Company Limited 31,112 - (125) (30,987) -
29 Employee benefit obligations 2015 2014

Ushs’Mn Ushs’Mn
At 1 January 1,963 1,860

Provision during the year 3,540 3,288
Gratuity paid (3,622) (3,185)
At 31 December 1,881 1,963
The Company is obliged to pay service gratuity equivalent to 30% of employee’s annual
basic salary every year to all employees on the anniversary of their contractual
employment. The related obligation is provided for on a monthly basis.
2015 2014
Ushs’Mn Ushs’Mn
30(a) Key management compensation
Salaries (including Executive Director’s salary) 1,940 1,856

Allowances and benefits 1,265 1,014
National Social Security Fund contributions 315 284
30(a) Key management compensation (continued)

2015 93
2015 2014
(b) Directors’ emoluments Ushs’Mn Ushs’Mn
Executive Director’s salary and benefits (also included in key
management compensation) 731 635
Directors’ fees 507 182
31 Basic and diluted earnings per share
Comprehensive income attributable to owners of the Company (96,678) 121,247
Earnings used in the calculation of basic earnings per share (96,678) 121,247
Weighted average number of ordinary shares for the purposes of

basic earnings per share - Millions 115.095 115.095
Earnings per share basic and dillute (840) 1,053
Earnings per share are calculated by dividing the profits by the number of shares in issue
as at end of the year.
2015 2014
32 Cash generated from operations Note Ushs’Mn Ushs’Mn
Profit before income tax (125,807) 19,858

Adjustments for:
Write-off of related party balances 10 - (30,987)
Grant income 10 (42) -
Impairment loss 12 1,013 26,181
Interest on long-term loans 14 - 1,312
Depreciation 16 14,031 14,997
Amortization of operating lease rentals 17 552 552
Amortization of intangible assets 18 391 401
Stock loss provision - 2,284
Loss on disposal of property, plant & equipment 30 11
Net foreign exchange losses 82,864 25,017
(26,968) 59,626
Changes in working capital
Increase in inventories 20 (6,175) (1,525)
Decrease in trade and other receivables 21 (103,197) 41,048
Increase in trade and other payables 28 55,253 16,544
Increase in employee benefit obligations 29 (83) 103
Cash generated from operations (81,170) 115,796
33 Projects’ bank accounts
These are accounts in the names of Ministry of Energy and Mineral Development that are
opened by the Accountant General in Bank of Uganda. The bank accounts are responsible
for holding project funds from both government and donors pending disbursements to
defray obligations in respect of Resettlement Action Plans executed by UETCL as the
implementing agency. Funds from Government to these project bank accounts are
appropriated by Parliament of Uganda under the vote to the Ministry of Energy and Mineral
Development and at the end of any one fiscal year, the unutilized balances on those bank
accounts may be transferred to the Consolidated Fund at the discretion of the Accountant
General.
33 Projects’ bank accounts (continued)

Uganda
These bank accounts and associated projects are audited separately by the Auditor
General. The funds held with Bank of Uganda are made up of the following:
2015 2014
UShs’Mn UShs’Mn
Cash balances relating to grants – note 33(a) 38,600 44,709

Cash balances relating to loans – note 33(b) 20,273 12,689
Cash balances relating to Government of Uganda Contributions
– note 33(c) 54,547 70,200
Total funds 113,420 127,598
(a) Balances relating to grants received
2015 2014
Account Name Donor Purpose Ushs’Mn Ushs’Mn
1. Feasibility Study Norwegian Grant for Feasibility Study of
Hoima-Kafu Agency for Hoima- Kafu Interconnection
transmission Line Development Project
(NORAD) 480 807
2. Feasibility of Norwegian Handling NORAD Grant Funds
Mirama Hills- Agency for for Mirama Hills- Kikagati
Kikagati Nsogezi Development Nsogezi Transmission Line Study
Transmission Line (NORAD) Project
Study Project 3,232 1,078
3. Construction of Norwegian Handling NORAD Grant funds for
Nkenda-Hoima Agency for Hoima Fort-Portal-Nkenda
Transmission Line Development Transmission Line Construction
Project (NORAD) Project 34,888 42,824
Total 38,600 44,709
(b) Cash balances relating to loans
2015 2014
Account Name Donor Purpose Ushs’Mn Ushs’Mn
1. Special account to handle
Interconnection of Electric African Nile Equatorial Grid Project
Grid of Nile Equatorial Development funded by African
Lakes Countries Project Bank Development Bank 37 31
2. World Bank To handle World Bank
funded Project costs
Masaka-Kawanda 220Kv under Energy Sector
Transmission Line Development Program 16,296 4,445
3. Handling AFD funds for the
Construction and Construction, installation
Commissioning of and Commissioning of
Substations at Nkenda, French Substations at Nkenda,
Fort portal and Development Fort Portal and Hoima
Hoima(Project ) Agency (AFD) (the Project) 3,940 8,213
Total 20,273 12,689
33 Projects’ bank accounts (continued)
51

(c) Balances relating to Government of Uganda Contributions
2015 2014
Account Name Purpose
Ushs’Mn Ushs’Mn
Resettlement action plan for persons
affected by Karuma Interconnection
1. Karuma Interconnection RAP Project 23,076 11,392
Mbarara-Nkenda &Tororo-Lira
Handle Resettlement Action Plan funds
2. Transmission Line Escrow 978 15,536
Handle Resettlement Action Plan GOU
3. Mputa Interconnection Project funded plans 25,606 31,082
Government under an Escrow
Agreement with Bujagali Energy
Bujagali Resettlement Escrow Limited Special account to handle Nile
4. Account Equatorial Grid 871 2,877
Interconnection of Electric Grid
of Nile Equatorial Lakes Project financed by Government of
5. Countries Project Uganda 1,096 4,436
Masaka-Kawanda 220Kv
Handle Resettlement Action Plan
6. Transmission Line - 1,762
Masaka-Kawanda 220Kv Handle Resettlement Action Plan for
7. Transmission Line Kawanda Masaka Project. 2,915 3,115
Opuyo Moroto Transmission
Handle Resettlement Action Plan
8. Line 5 -
Total
54,547 70,200
34 Prior year adjustment
In 2014, the Board of Directors of UETCL approved the transfer/handover of the 33/11kV
Substation’s SCADA data links and terminal equipment to Uganda Electricity Distribution
Company Limited (UEDCL), at its net book value as at 31 December 2013.
Although UETCL had the legal rights over the assets based on the instrument of ownership,
these did not qualify to be recognized in UETCL’s books off account as assets because the
future economic benefits associated with using these assets will flow to UEDCL.
The prior year adjustments therefore relate to derecognition of the assets.
The 2013 and 2014 balances have been restated as follows;
2013
Note As previously Adjustment As restated
stated
Statement of financial position
Property and equipment (a) 427,985 (778) 427,207
Accumulated losses (a) 41,149 778 41,927
a. The adjustment of Ushs 778 million relates to derecognition of the cost of SCADA
equipment worth Ushs 3.48 billion and accumulated depreciation of Ushs 2.7 billion.
52

34 Prior year adjustment (continued)
2014
Note As previously Adjustment As restated
stated
Statement of financial position Ushs’Mn Ushs’Mn Ushs’Mn
Non-current assets
Property and equipment (a) 777,662 (1,661) 776,001
Liabilities
Deferred income tax liability (b) (43,816) 346 (43,470)
Accumulated fund (c) 24,825 506 25,331

Revaluation reserve (d) (105,460) 809 (104,651)
(124,451) 1,661 (122,790)
Statement of comprehensive
income
Depreciation and amortisation (e) 16,222 (272) 15,950
a. The adjustment of Ushs 1.6 billion relates to derecognition of the revalued assets worth
Ushs 1.94 billion and reversal of depreciation charge for the year computed on the
equipment.
b. The adjustment of Ushs 346 million relates to derecognition of the deferred income tax
liability relating to the revaluation gain on the SCADA equipment.
c. The adjustment of Ushs 506 million relates to derecognition of the asset cost worth
Ushs 3.48 billion, accumulated depreciation worth Ushs 2.7 billion and reversal of the
depreciation charge worth Ushs 272 million relating to the equipment that were
derecognised in 2013 but depreciated in 2014.
d. The adjustment of Ushs 809 million relates to derecognition of the revaluation gain
relating to the SCADA equipment.
e. The adjustment of Ushs 272 million relates to derecognition of the depreciation

charged in 2014 on the derecognised assets.
35 Employees
The total number of employees as at 31 December 2015 was 441 (2014: 426) of which 303
were mainstream contract staff (2014: 296) and 138 (2013: 130) were deployed on various
Projects. The salaries and benefits in respect of Project Staff are capitalized as part of the
project costs.
36 Contingent assets and liabilities
The company is a defendant on various legal actions arising in the normal course of
business. The company has been advised by its legal counsel that it is only possible, but
not probable, that actions estimated at Ushs 73.7 billion (2014: Ushs 33.2 billion) will
succeed. Accordingly, no provision for these liabilities has been made in these financial
statements. The company is defending itself against these actions and therefore, it is not
practical to state the timing of the payments if any.
53
36 Contingent assets and liabilities (continued)
In addition, the company has contingent assets amounting to Ushs 1.2 billion. These have
not been recognised in the company’s financial statements due to uncertainty surrounding
the recoverability of the amount.
The company has a contingent tax liability of Ushs 14,300 million in respect of VAT on
imported power relating to the period 2006 to 2009. The Company, on the advice of
Ministry of Finance, Planning and Economic Development, lodged an appeal to Uganda
Revenue Authority for waiver of the tax liability. As at 31 December 2015, URA had not yet
responded to the Company’s appeal to have the tax liability waived.
37 Commitments
Capital commitments
As of 31 December 2015 the Company had contracted capital expenditure amounting to
Ushs 409,858 million (2014: Ushs 998,000 million) of which Ushs 409,320 million related to
grid expansion works and Ushs 538 million was for supply of normal capital assets.
Guarantees
As at 31 December 2015, the Company had bank guarantees amounting to USD
13,800,000 held in favour of various Energy Generation companies.
38 Events after the reporting date
There were no events after the reporting date that would affect the operating performance
or financial position of the Company as at 31 December 2015.
98 54
Notes

Rugonjo - Nkenda 132kV
wooden transmission line


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ANNUAL

2 Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015

Abbreviations & Acronyms 8

Company Strategic Focus Areas 9

Financial and Operational Highlights 10

Power Purchase Agreements Executed in the Year 2015 11

Business Performance & Highlights 12-16

Board Members 18-19

Chairman’s Statement 22-23

Report of the Managing Director/CEO 24-28

UETCL Present & Future Grid Network 29

Health Safety & Environment 30

Corporate Governance 31-34

UETCL Risk Statement for 2015 35-36

Auditor General’s Report 39-44

Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015 3

UGANDA ELECTRICITY TRANSMISSION COMPANY LTD

4 Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015

Plot 10 Hannington Road

Government of Uganda represented by:

Mr. Peter Ucanda - Chairman

Ms Kateera & Kagumire Advocates

Standard Chartered Bank (U) Limited

6 Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015

Kateera & Kagumire Advocates

Price Water House Coopers Limited

Regional Power Trade Partners (Power Exports)

Local Independent Power Producers

Sub stations: 17 Grid Substations, with capacity of 1,000 MVA

Number of employees: 441

Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015 7

Namanve GIS 132/33kV Substation

8 Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015

Sustainable Corporate Values

Company Strategic Focus Areas

Robust Human Financial

Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015 9

Financial Statistics 2015 2014

Cash flow data

Operating and other statistics 2015 2014

Opuyo 132/33kV substation

10 Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015

Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015 11

Kawanda 400kV substation plant house

12 Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015

Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015 17

Mr. Eriasi Kiyemba - MD/CEO

Mr. Nicholas David Oluka - Member

Mr. Christopher Mugisha - Member

18 Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015

Ms Sarah I. Timarwa - Member

Mr John Genda Walala - Member

Mr. Dennis Wamala

Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015 19

Eriasi Kiyemba Willy K. Kiryahika

Valentine Katabira Boneventura Buhanga George Rwabajungu

Frederick C. Zesooli Martin Erone Peter Igibolu

Edward Muganyizi William Nkemba

20 Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015

Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015 21

22 Uganda Electricity Transmission Company Limited | ANNUAL REPORT 2015

In this regard, in conjunction with government and our

Upgrade of Masaka West