Whereas Umeme Limited and the government of Uganda are set to face off against each other in an arbitration court based in London over the former’s contractual buyout claim, the role of diplomatic influence and bilateral economic relations between Kampala and London remains less clear, in a high-stakes financial dispute largely anchored on accounting technicalities.
Though the two parties commenced negotiations in April aimed at exploring an amicable settlement over Umeme Limited’s controversial buyout claim, failure to resolve the stalemate compelled Umeme officials to pursue foreign arbitration proceedings against the government last month, in line with its electricity distribution agreement signed in 2004.
