IDA Guarantee for Renewable Energy Development Program

closed

The objective of the Series of International Development Association (IDA) Partial Risk Guarantees for Renewable Energy Development Program Project is to increase electricity generation capacity of Uganda through renewable energy based small private power producers. This component includes: based on a Government-led assessment, a key priority for attracting private sector participation in small renewable energy projects is to provide risk mitigation instruments. The Government has therefore requested the Bank to consider the provision of Partial Risk Guarantees (PRG) to support the development of renewable energy SPPPs. The Government of Uganda (GoU) further requested the Bank to consider providing different structures of partial risk guarantees to support UETCL ongoing Power Purchase Agreement (PPA) obligations and GoU obligations under Implementation Agreement (IA). Partial Risk Guarantee (PRG) support should be provided to the extent that it makes individual projects bankable, but without exceeding the minimum required level of coverage. The IDA guarantees will be offered in parallel to the Global Energy Transfer Feed-in Tariff (GET FiT) premium support.