Located in eastern Uganda, the plant will be developed and owned under the expertise of Italian firm Building Energy, who will be responsible for the construction and operation of the power plant, TradeArabia News Service reported.
According to media, the Bank acted as Mandated Lead Arranger of the $14.7 million facility, of which 50% was syndicated to the Emerging Africa Infrastructure Fund (EAIF).
FMO Bank supports energy access
Media reported that once commissioned, the plant will provide an estimated 36,200 people with clean power and offset around 7,400 tCO2eq of green house gases annually.
Matteo Brambilla, Building Energy managing director Africa, said: “We are pleased with the closing of this agreement, which demonstrates Building Energy’s commitment to the African market.
“We believe that the Tororo project will be strategic to further consolidate our presence in East Africa.”
He added: “The plant will support Uganda’s energy needs creating in the meantime new jobs which will enable the local communities to take part in the development of the country.”
"The project is developed under the KfW led GET FiT facility, which is a dedicated support scheme for renewable energy projects managed by Germany’s KfW Bankengruppe in partnership with the Government of Uganda through the Electricity Regulatory Agency (ERA)," TradeArabia News Service reported.
It is funded by the European Union Infrastructure Trust Fund, and is also supported by the Governments of Norway, Germany and the UK.
Linda Broekhuizen, chief investment officer of FMO, said: “FMO is proud to support this renewable energy project in Uganda.
"We aim to make a difference in people’s lives in a country where electricity is not always reliable and are therefore pleased to work with investors who are committed to renewable solutions.”