- Active: Exited
- Region: Africa
- Country: Uganda
- Sector: Energy
- Year: 2008
- Domicile: Uganda
- Commitment (MNOK) as of 30.09.2018: 0
- Original Commitment (MNOK): 66.6
13 MW hydropower plant in Uganda developed together with TrønderEnergi. Construction was completed in 2009 and has been operational since. Exited project in February 2015.
Bugoye is a 13 MW hydropower plant in Uganda. In 2008, Norfund and TrønderEnergi jointly developed a power plant on a river in Bugoye in the western part of Uganda, through the company TronderPower Ldt. Norfund owned 27.5 per cent and TrønderEnergi 72.5 per cent of the joint venture. The industry expertise for developing and running hydropower plants in TrønderEnergi was utilized, and both technology and competency transfer to the Uganda organization were keys to the success of the project. In the construction phase of the project, 425 local jobs where created both directly and for local sub-contractors. In the current operations 10 locals have full time employment at the power plant.
Norfund cooperated closely with TrønderEnergi throughout the development of the plant and the surrounding area. The power plant opened in October 2009 with a capacity of 13 MW. The project was registered in the green development mechanism and was expected to reduce annual CO2 emissions in Uganda by approximately 54 kilotonnes.
In July 2015 Norfund’s shares in Tronder Power Ltd (Bugoye) was exited via a sale together with TrønderEnergi to Uganda Hydro Holdco. This is a 100% owned subsidiary of Africa Renewable Energy Holdings Ltd, managed by Berkeley Energy. The deal also included selling down Norfund’s share in the Kikagati and Nsongezi project companies to 30% and transferring the project development responsibility to Berkeley Energy’s Ugandan subsidiary Maji Power.
IRR from this investment was 6%.