This refinancing of Uganda’s major power dam will amongst others contribute to lower electricity costs and access stable to electricity in Uganda.
Bujagali hydropower plant is Uganda's largest and one of the largest in Africa. It generates almost half of Uganda’s energy supply by providing clean, reliable base load energy.
In July 2018, SN Power – the Norwegian hydro power company fully owned by Norfund - bought two thirds (65%) of the shares of Bujagali Energy Limited (BEL) from the investment company Blackstone. SN Power will, with their experience from operating other hydropower projects around the world, contribute to an effective operation of Bujagali.
The investment by SN Power follows the project’s successful refinancing with its lenders – including development finance institutions such as the International Finance Corporation and African Development Bank – which reduced Bujagali Energy Limited’s annual debt-servicing payments, lowering the tariff of electricity produced by the hydropower plant.
In 2043, Bujagali will be transferred to the Government of Uganda for one US dollar with an expected remaining life of 70+ years.
I am excited by this agreement. It is good for all parties and ensures Uganda clean and stable energy for several decades in the future. It is also proof of our commitment to the long-term strategy on focusing on investing in sustainable hydropower projects in developing markets across Africa and Asia.
Torger Lien, CEO of SN Power