EAIF has agreed to provide finance totaling US$49 million to two power projects in Uganda being constructed by Tronder Power Limited at Bugoye and South Asia Energy Management Systems (SAEMS) at Mpanga.
SAEMS Mpanga Power Project
SAEMS is a US-based renewable power generator with significant interests in Sri Lanka. EAIF has agreed to provide US$14 million of senior debt in relation to their first African project in Uganda. The Mpanga Hydro Power Project is a run of the river hydro project built to generate 18MW. The power will be sold to the Ugandan grid under a long-term Power Purchase Agreement.
Bugoye Power Project
EAIF has agreed to provide finance totaling US$35 million to fund the Bugoye power project being developed by Tronder Power Limited. The project is a “run of the river” hydro electric installation; it will have an installed capacity of 13 MW with an annual mean generation of 82 GWh.
Bugoye is located in the Kasese district which is at the foot of the Rwenzori Mountains in the west of Uganda bordering to DRC. The project will feed its energy into the main grid at the Nkenda Substation via a 6 km long 33 kV transmission line. This transmission line will be financed by a Grant from the Government of Norway to the Government of Uganda but the project company will take on the task of developing, constructing and operating the line.
The limited power supply in Uganda is a severe constraint on economic development. The cost of hydro power is significantly less than that of thermal plants that rely on imported oil. Increased carbon emissions are also avoided. Small hydro projects such as Bugoye and Mpanga are attractive because construction periods are relatively short and they will provide Uganda with more power considerably ahead of the major Bujagali project coming on stream.