The Emerging Africa Infrastructure Fund (EAIF) announced that on August 7 the 14-MW Kikagati hydropower station being built on the border between Uganda and Tanzania reached financial close. According to EAIF Executive Director, Emilio Cattaneo this means that the first tranche of debt funding has been released to the Kikagati Power Company (KPC), which will own and operate the plant when construction is complete.
“The announcement of the financial close of the US $54m debt finance package for the Kikagati hydro-electricity station brings closer a new source of electricity that will be equally shared between Uganda and Tanzania. EAIF is lending US $27 million and the Dutch development bank (FMO), has contributed the same amount. Both loans have 16-year terms. The overall cost of the project is US $87 million,” said Cattaneo.