Uganda has jointly established an $8.6-million fund with the World Bank to help finance new power projects in the country. The fund will be managed by the Uganda Energy Credit Capitalization Co. (UECCC) to help accrue more private participation through loans for electricity generation projects.
These projects include mini hydropower schemes of up to 1 MW, solar plants, and other various renewable energy schemes. The country will need a capital infusion of about $7.2 million with a further $1.44 million in the future from financiers. “Uganda’s banking industry has not been able to meet the financing needs of the energy sector, which are long term in nature,” UECCC general manager Specioza Kimera Ndagire said, adding that her company would work with 10 banks that were participating in the administration of loans dispensed under this fund, to offer flexible terms for borrowers with a five- to seven-year repayment grace period.
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