Umeme Capex II (IFC-38598)

Countries
  • Uganda
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 9, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
UMEME LTD
The holder of the loan, grant, or other investment.
Sectors
  • Hydropower
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 28, 2018

Disclosed by Bank Sep 22, 2016


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Project Description

Umeme Ltd. is a regulated electricity distribution company in Uganda, supplying over 800,000 customers mainly located in the semi-urban corridor linking Kampala, Entebbe and Jinja. In March 2005, Umeme was awarded a 20 year concession to manage and operate the assets of Uganda Electricity Distribution Company (UEDCL). The award of the concession was part of Uganda's broader privatization of its power sector, which also involved the unbundling of transmission, distribution and generation, and the awarding of concessions for the operation of its existing generation assets. Uganda's power sector privatization was fully supported by the World Bank Group. Umeme's shares floated on the Nairobi and Kampala stock exchanges; UK based Actis Infrastructure 2 LP has a significant shareholding in the company (14%).In 2009, IFC committed $25 million in debt financing to support Umeme's operations. In November 2012, IFC participated in an Initial Public Offering to support Umeme's rehabilitation and development of its network through additional connections, implementation of a new customer billing system, rolling out a customer call center and work management centers, and expansion of its environmental, health and safety management capacity. IFC also provided a $70 million debt financing to support Umeme's 2013 - 2018 capital expenditure program. The program mainly involves the upgrade and expansion of medium voltage transmission lines and substations and the introduction of pre-paid meters across its customer base. IFC is now proposing to increase its commitment to finance this capital expenditure program by an additional debt financing of $25million (the "project").

Investment Description
  • International Finance Corporation (IFC)
Contact Information

Contact Person: Marie Nassiwa
Company Name: Umeme Limited
Address:2nd Floor Rwenzori House, Plot 1 Lumumba Avenue
Email: mailto:marie.nassiwa@umeme.co.ug
Phone: 0312360617

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/