Project detail - ELGON HYDRO SITI (PVT) LIMITED

ELGON HYDRO SITI (PVT) LIMITED

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Who is our client

The client is Elgon Hydro Siti Limited, a SPV set up to develop, construct and operate two run-of-river hydro plants (Siti 1: 5MW and Siti 2: 16.5MW) in the Elgon area in Eastern Uganda. Elgon 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 in Uganda under the KfW led GETFiT program.

Funding objective

FMO provides a USD 24 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 Siti 2 hydro plant. FMO has financed the construction of the Siti 1 plant, which started in 2015.

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 60 GWh clean energy per year, and will support strengthening of Uganda’s grid in the east of the country. The electricity produced will serve the equivalent of 706,000 people and has an annual avoided GHG rate of 30,624 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.

More investments

Date Total FMO financing
6/25/2015 USD 5.30 MLN
Website client
http://www.frontier.dk
Region
Africa
Country
Uganda
Sector
Energy
Signing date
9/19/2016
Total FMO financing
USD 11.95 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B+