BUJAGALI ENERGY LIMITED
Status: Approved investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Bujagali Energy Ltd owns and operates a 250MW hydro power plant on the Nile river, 8km north of Jinja, Uganda. The power plant was commissioned in 2012 and since then has been supplying energy to the Ugandan grid.
What is our funding objective?
FMO participated in the original financing of the power plant with a senior and subordinated loan with remaining tenors of 5.5 and 9.5 years. Bujagali Energy Ltd will refinance a large portion of the original financing with a new financing consisting of senior loans with a 15 years tenor.
Why do we fund this investment?
The longer tenor will result in lower annual debt service for Bujagali Energy Ltd. and consequently in a lower electricity tariff, which is beneficial for the energy sector. This makes electricity better affordable to Ugandans and contributes to creating an enabling environment for economic growth.
What is the Environmental and Social categorization rationale?
The E&S Risk Category is A, as it is recognised that there is potentially high risk to communities and the environment from this type of project. The refinancing does not involve any construction works, modification to existing structures, or changes in the operation of the power plant. A robust and well-resourced Environmental and Social Management System is in place to avoid, minimise or otherwise mitigate all adverse impacts. The environmental and social performance of the power plant was reviewed against the latest IFC Performance Standards. Key finding is that PS6 (critical habitat) now applies. A dedicated biodiversity action plan has been prepared. The environmental and social action plan has been updated to address outstanding items.
- Region
- Africa
- Country
- Uganda
- Sector
- Energy
- Effective date
- 6/22/2018
- Total FMO financing
- USD 56.70 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A