The Emerging Africa Infrastructure Fund (EAIF), a financing facility of the Private Infrastructure Development Group (PIDG), has confirmed its financing for the Nyamwamba ll hydroelectric power plant in Uganda. The $10.6 million loan is being provided to its developer Serengeti Energy.
The $10.6 million loan to Serengeti Energy will be repaid over 17 years. The financing is provided by the Emerging Africa Infrastructure Fund (EAIF), a financing facility of the Private Infrastructure Development Group’s (PIDG). This financing is a further step towards the financial closure of the Nyamwamba II hydroelectric project. And EAIF is the “sole lender” to the project, which is already in operation in the Kasese district of western Uganda.
Serengeti Energy has therefore developed the Nyamwamba ll project using its own funds. According to EAIF, its loan will make the project more financially viable and have a long-term impact. The run-of-river power plant went into commercial operation a few weeks ago and will enter its construction phase in 2019.
Impact on industrial development in Kasese
The new facility is located upstream of the Nyamwamba I hydropower plant (9.2 MW), also operated by Serengeti Energy. The Sri Lankan company Saems Hydro was responsible for the balance of plant and civil works for this hydropower project. The Austrian company Andritz was responsible for the electromechanical work in collaboration with Zutari, the project engineer.
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The electricity generated by the run-of-river plant is sold to Uganda Electricity Transmission Company Limited (UETCL) under a 20-year power purchase agreement (PPA). “The Ugandan government is planning to establish an industrial park in Kasese district, focusing on food and raw material processing, which will result in an increased demand of 50 to 100 MW. Nyamwamba ll is part of a regional power generation and supply sector that feeds industries, agriculture, households and utilities,” says EAIF.
The electricity is fed into Uganda’s national grid from the Nkenda substation, which will also be a hub for future electricity exports to the neighbouring Democratic Republic of Congo (DRC). The project required an investment of US$22 million.
Jean Marie Takouleu
