Namanve Power Plant

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In September 2008, the 6-year BOT 50MW Namanve Power Plant project reached financial closure. The project company was Jacobsen Uganda Power Plant Company (JUPPCL), a wholly owned subsidiary of the Norwegian firm Jacobsen Elektro AS. The project was awarded by the government of Uganda to Jacobsen Elektro AS in 2006. The award followed a competitive tendering process between three final bidders: Jacobsen Elektro AS, Electro-Maxx and African Power Initiative. Details on the bid criteria remained undisclosed. Under the term of the agreement, Jacobsen Uganda Power Plant Company (JUPPCL) was expected to build, own, operate and transfer the plant to the Government of Uganda, after a period of six years. The plant represented an investment commitment of US$66 million (later increased to USD88 million in 2007) and comprised seven 18V32 Wärtsilä engines that produced a total of 50 MW. The power was transferred through two 11/33kV transformers and fed into the transmission system. No information was available on the term of the PPA agreement. Exact financing arrangements were not publicly available. Financing partners were the Norwegian government (through a NORAD grant), Nordea Bank (Norway), Stanbic Bank Uganda, Jacobsen Elektro and a GIEK guarantee. The plant became operational in September 2008. The plant was briefly shut down in July 2011 following financial disputes (an outstanding bill) with the Government of Uganda, but was switched on again after a week or so. Actual investment USD74 million (lower than calculated benchmark). Previously input figure was USD93 million. Response: The acutal investment has increased from US$66 million (sh109b) to US$88 million (sh145.2b) Source: bidding documents