A facility agreement for the 10 MW (14GWh/y) Tororo Solar North PV solar power project in Uganda was signed today
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”.
About FMO
FMO is the Dutch development bank. As a leading impact investor FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development, and has a 45-year proven track record of empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With a committed portfolio of EUR 8.9 billion spanning over 85 countries, FMO is one of the larger bilateral private sector developments banks globally. For more information please visit www.fmo.nl.
About BUILDING ENERGY
Building Energy is a multinational company operating as Global Integrated IPP in the Renewable Energy Industry on four continents. The company is vertically integrated on the value chain, from the development of projects to the sale of energy. With a pipeline in 24 countries with over 2,500 MW and generative assets being built over the next two years for more than 800MW (the Near Notice to Proceed and Backlog projects), the company is positioned to be one of the major players on the international scene in the renewable energy field. For further information, visit the site www.buildingenergy.it.
