Kampala, Uganda | THE INDEPENDENT | Emerging Africa Infrastructure Fund (EAIF) and the Dutch Development Bank (FMO), will provide US $29.3 million to refinance the 13 MW Bugoye hydro-electric power station in Kasese, western Uganda.
Bugoye has been generating electricity since 2008 and this power is being feed into the national grid.
The money will go to paying EAIF the balance of its original loan to the project, pay for repair works, and clear construction loans made by the project sponsor, the Africa Renewable Energy Fund (AREF).
AREF, managed by Berkeley Energy, said it will use the refinancing proceeds to invest in other greenfield hydro-electric plants in the country.
Nazmeera Moola, the head of EAIF at Investec Asset Management (IAM) whose firm arranged the deal, said on July 21 that the refinancing is a good example of how a successful power generation facility can be used to mobilize fresh capital to build new capacity.
The refinancing agreements were signed recently with the financial close expected soon.