Project detail - LUBILIA KAWEMBE HYDRO LIMITED

Who is our client

The client is Lubilia Kawembe Hydro Limited, a SPV set up to develop, construct and operate a 5.4MW run-of-river hydro plant in the Kasese district in Western Uganda. Lubilia is majority owned by DI Frontier Market Energy and Carbon Fund K/S Fund, a Danish private equity fund that is developing a portfolio of renewable energy IPPs in eastern Africa. DI Frontier is currently developing four run of river hydros, one of which is Lubilia, in Uganda under the KfW led GETFiT program.

Funding objective

FMO provides a USD 10.2 million senior loan, of which 50 percent has been catalyzed from Emerging Africa Infrastructure Fund ("EAIF"). The loan facility will be used for the construction of the Lubilia hydro plant.

Why we fund this project

FMO finances this small, run of the river hydro power plant in Uganda to support the development and construction of additional renewable electricity generation in Uganda. The project is expected to generate 21 GWh clean energy per year, and will support strengthening of Uganda’s grid in the west of the country. The electricity produced will serve the equivalent of 256,000 people and has an annual avoided GHG rate of 11,000 tCO2eq. The project coincides with FMO’s strategy to contribute to clean energy projects in emerging markets. In line with this strategy, FMO also catalyzes funds from EAIF.