Les Assemblées annuelles 2019 du Groupe de la Banque africaine de développement se tiendront du 11 au 14 juin 2019 à Malabo, en République de Guinée équatoriale. En savoir plus



  • Référence: P-UG-FAB-008
  • Date d’approbation: 17/11/2017
  • Date de début: 17/07/2018
  • Date d'évaluation: 30/06/2017
  • Statut: En coursOnGo
  • Agence d'implémentation: --
  • Emplacement: Uganda


Project Description: The transaction entails restructuring of the Bujagali project debt in order to lower the project's tariff during 2018 - 2023. Bujagali is a 250-MW hydropower plant (HPP) - developed through a build-own-operate-transfer (BOOT) model in Uganda and generating around half of the country's annual power. BEL's tariff of 11.3 cents/kWh in 2017 will rise to 13.3 cents/kWh in 2018 and gradually to 14.5 cents /kWh in 2023 owing to

(i) the expiry of a tax holiday' and

(ii) to accommodate current debt amortization. The Sponsors, at the request of Government of Uganda (GoU), are working with the AfDB and IFC to put in place the requisite long-term debt. This Project is foreseen to contribute towards reducing BEL'stariff by ~ US ~5 cents/kWh during 2018 - 2023 Sponsors: Bujagali Energy Limited (BEL) is a Uganda-registered Special Purpose Company (SPC) and its sponsors are Industrial Promotion Services and SG Bujagali Holdings. The UK's CDC Group in the context of its wider collaboration with Industrial Promotion Services (IPS) has recently acquired an equity interest in BEL. Cost Structure and Financing Plan: The original project cost was USD 900 million with debt financing of approximately USD 700 million provided by AfDB, AFD, DEG, EIB, FMO, KFW, IFC, Proparco and commercial banks (under a partial risk guarantee from the World Bank). Over the last four years, BEL has repaid over USD 200 million of its debt and USD 478 million is outstanding. Hence, BEL needs to raise around USD 500 million of 15-year debt to restructure the existing debt and also meet the cost of the restructuring. While the AfDB had initially proposed that the DFIs provide a partial credit guarantee to leverage financing from institutional investors, the commercial dynamics have led the AfDB, IFC and other DFIs to decide on providing 15-year debt. Bank's Role: The IFC and the Bank are the mandated lead arrangers for the project: IFC will provide a senior loan of up to USD 100 million (compared with its current USD 92 million exposure) while the AfDB will provide a senior loan of up to USD 105 million (compared with its current exposure of USD 72 million). In addition, IFC and AfDB are liaising with other financiers to complete the financing plan. Implementation Arrangements: AfDB and IFC have been liaising closely with the GoU, Sponsors and existing lenders to determine the best approach for restructuring of BEL's existing debt with a view to ensuring an appropriate reduction in the tariff during 2018 - 2023. All parties have agreed that the best way forward is to restructure the Project's debt with most of the existing lenders staying in the Project. Market: Uganda liberalized its electricity sector in 1999, enabling the active participation of IPPs, which now account for over half of generating capacity. While Uganda's generating capacity has been sufficient since mid-2012 to avoid load shedding, electricity access remains low with less than a fifth of the population having access to electricity. The demand for electricity is projected to surpass existing generation capacity in the next few years and Uganda is working on other projects (around 800 MW) to meet the growing demand from industrialization and households. Justifications for the AfDB's Involvement: Strategic Alignment: The transaction is aligned with the CSP 2017-21 which puts emphasis on infrastructure development for industrialization and Uganda's Second National Development Plan (NDP 2015/16 - 2019/20) which identifies that access to power by the manufacturing sector remains a key constraint. From the Bank's perspective, the transaction is well-aligned with the High 5s namely

(i) Light up and Power Africa as well as

(ii) Industrialize Africa as it will contribute to Uganda's efforts to make power more affordable for businesses and

(iii) the increased affordability of power will also contribute towards improved social wellbeing. Commercial Viability: BEL's commercial viability is good as Uganda Electricity Transmission Company Limited (UETCL) has consistently met its PPA obligation. In turn, BEL has honored its debt service obligations and has also distributed dividends to its shareholders. The Bank's supervisions have consistently confirmed the status of the project as satisfactory. Since the Project commenced operations, the Debt/EBITDA ratio improved from 4.36 x to 3.45 x as the project paid off paid off over USD 200 million of senior debt. Projected financial performance gives a minimum DSCR of 1.88 x under restructured scenario. Overall, the Bujagali hydropower plant is an operating asset that is widely viewed as a success story which has contributed significantly to Uganda's economy in recent years and the restructuring will enhance its position at a time that Uganda could potentially have excess capacity in the early 2020s, if the GoU's industrialization and access plans are not achieved. Development Outcomes: The immediate development outcome arises from reducing BEL's tariff over the medium-term which will contribute towards ensuring that Uganda's overall electricity tariff remains affordable - allowing businesses to grow and create jobs, and also contributing towards an increase in the consumers' use of electricity.

Additionality and Complementarity AfDB's additionality is derived from its role as a mandated lead arranger along with IFC for the restructuring. Project Team and Processing Schedule: Project Team Arkins Kabungo, Matthieu Jalard, Farid Mohamed and Monojeet Pal (Investment Officers), Olivier Eweck and Richard Ofori -Mante (Technical Services and Client Solutions) Xavier Rollat (Syndications and Co-financing), Thierry Kangoye (ADOA), Aisha Barnabas (Credit Risk), Alemayehu Wubeshet-Zegeye (Power Systems), Juliet Byaruhanga (Portfolio Management), Daniel Isooba (Infrastructure Specialist), Gilles Yameogo and Emmy Rono (Legal), Justin Ecaat (Environmental and Social Safeguards), Alexis Rwabizambuga (Economist). Peer Reviewers Cedric Mbeng-Mezui (Financial Market Officer), Alli Mukasa (Investment Officer), Namho Ho (YPP), Philippe Ossoucah (Power Systems) Processing Exploratory Review: 20 December, 2016 N/A Final Review: [3] August 2017 Board Approval: [20] September, 2017

Contacts clés

AMMAR Tarek Saleh Mostafa - PESD1


Source Montant
BADUSD 76.585.316
DeltaUSD 288.104.684
TotalUSD 364.690.000
You are currently offline. Some pages or content may fail to load.