Parliament Questions UETCL's Fibre Network Deal with Samanga Utilities

The parliamentary Committee on Commissions, Statutory Authorities and State Enterprises (COSASE) is examining the circumstances surrounding the cancellation of an open bidding process for a partner to commercialize UETCL’s fibre optic network. Officials from UETCL, led by Acting Executive Director Richard Matsiko, appeared before the committee to address queries from the Auditor General’s report.

COSASE, chaired by Muwada Nkunyingi, is questioning why companies that had initially expressed interest are no longer being considered, and how Samanga Utilities Limited became the focus for the Uganda-Tanzania fibre connection project.

Documentation reveals that the Uganda-Tanzania fibre project is linked to a Presidential directive issued in August 2025. President Yoweri Museveni suggested an alternative internet route through Tanzania could be more cost-effective than the current route via Kenya, citing “many commercial players looking for profit” that drive up costs on the Kenyan side.

The President noted that Tanzania, along with Samanga, had proposed leveraging Tanzania’s high-voltage transmission lines to connect to UETCL’s network. This led to consultations in June 2026 involving UETCL and Samanga Utilities, with the Ministry of Energy and Mineral Development subsequently directing UETCL to halt its open bidding process.

In a directive dated July 27, 2026, Energy Minister Monica Musenero Masanza instructed UETCL to prepare a new request for proposals (RFP) specifically for Samanga Utilities. This RFP was to address value for money and technical requirements, and was to be submitted to the ministry for approval before issuance.

This directive followed an assessment of Samanga’s proposal, which included establishing a special purpose vehicle to commercialize the fibre network over a 20-30 year concession. The procurement process and its handling are now central to COSASE’s investigation, alongside broader financial concerns at UETCL, including the recovery of significant long-standing receivables and outstanding court awards.

https://nilepost.co.ug/news/368959/uetcl-in-spotlight-over-uganda-tanzania-fibre-connection