Joint partial credit guarantee totalling USD 1.06 million covering part of the financing for a hybrid solar generation system and associated transmission and distribution systems of Bugala Island in Lake Victoria, Uganda
Nedbank Limited, EAIF and USAID (as co-guarantor)
USD 1.06 million
Total transaction amount
USD 12 million (part of Kalangala Infrastructure Services transaction)
GuarantCo played a crucial role over a five-year period in underwriting (at times for substantially larger amounts), structuring and executing the finance. This is the first time that GuarantCo has provided a joint guarantee with USAID and the first time that Nedbank has been the beneficiary of a guarantee from GuarantCo. We worked closely with USAID to amend their standard form documentation in order to align it more appropriately with a project financed structure.
Kalangala Renewables consists of a 1.6 MW (nominal) hybrid solar and diesel power generation system, 33kv transmission system, low voltage distribution system and the installation of a prepaid metering system to households and businesses on the Island. This project is part of an integrated project with Kalangala Infrastructure Services.
At present there is no operational grid-based electricity supply on Bugala Island with most of the population, schools, institutions and businesses on the Island lacking access to reliable and affordable electricity. The extension of daytime activities, such as studying, will add to the Island’s productivity and education. More specifically, anticipated improvements include the following: