Last Updated January 18, 2008
The European Investment Bank (EIB) has lent US$136mn to the Bujagali power project in Uganda. The loan will be granted to Bujagali Energy Limited (BEL), a private company established in Uganda to build, own and operate a 250MW bydro-electric project on the upper Nile in Bujagali. The US$867mn power project has now reached financial close. (Click here for previous coverage in GTR eNews, January 4, 2007) The financing is the first greenfield power financing in Uganda, and the largest private sector investment in east Africa to date.
The financing package consists of a senior debt tranche of US$613.8mn, and a subordinated debt of US$68mn. The remaining funds will be funded through equity, marking the largest private equity power investment made to date in Africa.
Alongside EIB's contribution, a number of other multilaterals and development agencies are contributing to the senior debt tranche: IFC, African Development Bank, KfW, FMO, DEG Agence Francaise de Developpment (AFD) and Proparco.
AFD and Proparco are providing a US$72.8mn credit facility. The commercial banks involved are Absa Bank and Standard Chartered. The commercial debt facility is said to be US$115mn.
The project has had strong support from the World Bank Group, which has extended US$360mn-worth of investment through its various lending arms.
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