Renewable energy company South Asia Energy Management Systems has received a US$24mn loan to develop a 14MW run-of-the-river hydropower project in Uganda.
Netherlands Development Finance Company (FMO) will provide US$12mn of the loan, the Emerging Africa Infrastructure Fund US$6mn, Finnfund US$2mn and DEG will provide US$4mn.
The loan follows on from an earlier financing in 2009, when the same four banks arranged a US$55mn debt package for the development of 12 hydropower projects in Uganda and Sri Lanka.
The hydropower plant will provide reliable, clean and relative low cost power to the country, FMO says in a statement.
Jody Lenihan, chief executive officer of SAEMS, says: “We are grateful to have a financing partner who shares our mandate of ‘sustainable profit’ which maximises the concurrent benefits to our shareholders, the local community of a developing nation in need of infrastructure improvement, and the environment.”
Huub Cornelissen, FMO director energy & housing, adds: “The unique portfolio approach of SAEMS –developing 13 projects in one entity – enabled us to provide financing to relatively small hydro projects, which are normally difficult to finance on a standalone basis.”
FMO was also involved in a US$867mn project financing for the 250MW Bujagali hydroelectric power plant project in Uganda in 2008.
Last Updated January 25, 2012
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