Multinational fund provides $27m for Uganda damConsutn
Private Infrastructure Development Group (PIDG), the business arm of the emerging African Infrastructure Fund (EAIF), has announced a $27 million loan to Kikagati Power Company Limited (KPCL).
The money is towards construction of a 14 MW river generation station at Kigagati on the Kagera River in south western Uganda.
PIDG encourages and mobilises private investment in infrastructure in the frontier markets of sub-Saharan Africa, south and south-east Asia, to help promote economic development and combat poverty.
Since 2002, PIDG has supported 170 infrastructure projects to financial close, mobilising $22.9 billion in private sector investment and supporting new or improved infrastructure for 231 million people. PIDG is funded by donors from seven countries comprising of the United Kingdom, Switzerland, Australia, Norway, Sweden, Netherlands, Germany and the World Bank Group.
The KPC plant is to consist of an 8.5 metre high dam of 300 metres in length, three turbines of 5.5 MW each and associated earthworks control and plant roots allied infrastructure connecting the plant to switch lands in Uganda and Tanzania.
According to the agreement, the generated power will be fully bought off by the Uganda Electricity Transmission Company before half of it is sold off to Tanzania.
KPCL is also backed by the $205 million Africa Renewable Energy Fund managed by Berkeley Energy, another vehicle involved with developing renewable power solutions in Asia and Africa. The Kikagati plant is the 10th renewable energy development backed by EAIF in Uganda. To date 138 MW of renewable generation has been financed by the EAIF representing a total investment of $123 million.
However, Uganda still has the lowest rates of electrification with average national rates of 20%, falling as low as 6% in many rural areas.