Building Energy, FMO agree financing for 10-MW solar project in Uganda

Author: katheriine_0x. License: Creative Commons, Attribution-NoDerivs 2.0 Generic.

October 7 (SeeNews) - Building Energy has agreed a USD-14.7-million (EUR 13.2m) loan with FMO, the Netherlands development bank, for the financing of the 10-MW Tororo Solar North solar power project in Uganda.

FMO arranged the senior loan, of which 50% was syndicated to the Emerging Africa Infrastructure Fund (EAIF), the parties said in a statement.

Building Energy, an Italy-based renewables developer, will develop and own the solar facility, which will be located in the Tororo area in eastern Uganda. The company will also be responsible for the construction and operation of the plant.

Uganda has one of the lowest electricity consumption per capita rates in the world, says the statement, with an average electrification rate of 18.2%. The Tororo solar project is expected to generate enough power for 36,200 people.   

The project is developed under the GET FiT support scheme for renewable energy projects, which is managed by Germany's KfW Development Bank in partnership with Uganda's government. It is funded by the European Union Infrastructure Trust Fund, and is also supported by the governments of Norway, Germany and the UK.

This is one of the country's first two solar projects, both of 10 MW, that were awarded support under the FiT scheme in late 2014. The other one is being built by Dubai-based Access Power and France's Eren Renewable Energy (Eren RE).   

(USD 1.0 = EUR 0.896)

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