Uganda: The 14 MW Kikagati hydropower station being built on the border between Uganda and Tanzania has reached financial close, Emerging Africa Infrastructure Fund (EAIF) announced.
This milestone means the first tranche of debt funding has been released to the Kikagati Power Company (KPC), which will own and operate the plant when construction is complete.
The announcement of the financial close of the $54 M debt finance package for the Kikagati hydro-electricity station brings closer a new source of electricity that will be equally shared between Uganda and Tanzania.
One hundred per cent of the energy generated by KPC will be bought by the Uganda Electricity Transmission Company Limited, Uganda’s single-buyer and transmission organisation, which will then sell half the energy on to Tanzania.
EAIF is lending $27 M and the Dutch development bank, FMO, has contributed the same amount. Both loans have 16-year terms. The overall cost of the project is $87 M.
Source: ESI Africa