Bujagali 2 (Refi)

active

Bujagali Energy Limited (“BEL” or the “Company”) owns and operates the 250 MW hydro power project (the “Project”) on Dumbbell Island, on the Nile River 8 km north of Jinja, Uganda. The Project was commissioned in 2012 and sells its entire output under a 30-year power purchase agreement with Uganda Electricity Transmission Company Limited (“UETCL”). The Project is an important source of power for the country as it generated c.44% of Uganda’s electricity in 2016.IFC’s proposed debt investment of up to $100 million for its own account, out of a total package of up to approximately $500 million, will be utilized by the Company to refinance its existing debt. The refinancing will lengthen the tenor of the Company’s existing loans and therefore reduce the amount of annual debt service and, in turn, lower the Project’s tariff under the power purchase agreement with UETCL. This will make the electricity in Uganda more affordable and is expected to support the government’s increasing electricity access agenda in the country. The proposed investment is not expected to result in any change to the Project’s physical or operational footprint or to its current power transmission arrangements.