Original disclosure @ FMO website
Updated in EWS Apr 9, 2018
Disclosed by Bank Jun 20, 2017
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Rwenzori Hydro (PVT) Ltd is a special purpose vehicle incorporated in Uganda to develop, construct and operate a 15MW run-of-river hydro power plant. The project is developed in parallel to the adjacent downstream 6MW Nyamaghasani 2 project. Rwenzori Hydro is in majority owned by a private equity fund managed by Frontier Investment Management Company from Denmark.
The funding is targeted towards the development and construction of the 15MW Nyamagasani I run-of-the-river hydro plant. FMO is the lead arranger for the approximately USD 25 mln senior debt tranche. FMO intends to provide USD 15 mln itself, and catalyze USD 10 mln from another party.
The transaction is expected to have a high development impact. It will support the economic development of Uganda and the region. The project is expected to generate 62 GWh clean energy per year, serving the equivalent of 157,580 people and has an annual avoided GHG rate of 32,736 tCO2eq. Uganda is a rapidly growing economy, but suffered from historic underinvestment in the power sector. In Uganda this is among others being addressed by the capacity addition targeted under the GET FiT program. FMO is additional in this transaction by providing debt with a 15y tenor, which is not available on the market in East Africa.
ACCOUNTABILITY MECHANISM OF FMO
Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW) . A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism.