The 5.4MW Lubilia Kawembe hydropower project in the Rwenzori Mountains of western Uganda was formally commissioned on 28th June. FMO finances this small, run of the river hydro power plant in Uganda to support the development and construction of additional renewable electricity generation in Uganda.
The project was developed under the global energy transfer feed-in tariff (GET FiT) facility, a dedicated support scheme for renewable energy projects managed by German development institution KfW in partnership with the government and will support strengthening of Uganda’s grid in the west of the country. The electricity produced will serve the equivalent of 274,168 people and has an annual avoided GHG rate of approx. 11,880 tCO2 eq.
FMO has acted as mandated lead arranger of the US$10.2m senior loan facility, of which 50% was syndicated to EAIF. The project is majority owned by DI Frontier Market Energy & Carbon Fund, a Danish private equity fund that is developing a portfolio of renewable energy independent power producers in Eastern Africa.
Lubilia Kawembe Hydro is one of 12 clean energy projects that FMO has financed in Uganda to date. FMO has invested in renewable energy projects in Uganda totaling 359MW. Our current exposure is USD 150mln.
