FMO and Building Energy enhance renewable energy provision in Uganda
A facility agreement for the 10 MW (14GWh/y) Tororo Solar North PV solar power project in Uganda was signed today
AA – FMO arranged a USD 14.7 million senior loan for the financing of the Tororo solar PV project in Uganda. The plant will be developed and owned by Building Energy, multinational company operating as a global integrated IPP in the Renewable Energy Industry with experience in developing more than 2000MW of renewable energy projects in Africa. Building Energy will be responsible for the construction and operation of the power plant. FMO acted as Mandated Lead Arranger of the USD 14.7 million facility, of which 50% was syndicated to the Emerging Africa Infrastructure Fund (EAIF).
The solar plant will be located in the Tororo area in Eastern Uganda. It will serve the equivalent of 36,200 people via generation and has an annual avoided GHG rate of 7,400 tCO2eq. Uganda has one of the lowest electricity consumption per capita in the world, with an average electrification rate of 18.2%. The country’s power sector suffered from a shortage of generating capacity and a lack of reliable and affordable electricity is hindering more sustainable economic growth. The project is developed under the KfW led GET FiT facility, which is a dedicated support scheme for renewable energy projects managed by Germany’s KfW Bankengruppe in partnership with the Government of Uganda through the Electricity Regulatory Agency (ERA). It is funded by the European Union Infrastructure Trust Fund, and is also supported by the Governments of Norway, Germany and the United Kingdom.
Linda Broekhuizen, Chief Investment Officer of FMO, said: “FMO is proud to support this renewable energy project in Uganda. We aim to make a difference in people’s lives in a country where electricity is not always reliable and are therefore pleased to work with investors who are committed to renewable solutions.”
Matteo Brambilla, Building Energy Managing Director Africa, said “We are pleased with the closing of this agreement, which demonstrates Building Energy’s commitment to the African market. We believe that the Tororo project will be strategic to further consolidate our presence in East Africa. The plant will support Uganda’s energy needs creating in the meantime new jobs which will enable the local communities to take part in the development of the country”.
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