{UAH} UMEME, Ugandan electricity distributor uses US$190 million loan

Uganda : UMEME, Ugandan electricity distributor uses US$190 million loan

November 22, 2013

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A US$190 million loan is utilized by Ugandan power distributor Umeme to fund a country-wide system upgrade in preparation for several new power generation projects that are anticipated to come on-stream in the next few years. This funding, the largest private sector corporate funding to date in Uganda , will support Umeme s US$440 million capital investment program to deal with with growing demand and cut energy losses. Umeme chairman Patrick Bitature said, The loan is a milestone for the energy sector which has never seen anything of this magnitude invested in the distribution network. Umeme is a unit of UK private sector equity investor Actis LLP . It acquires power from Uganda Electricity Transmission Company for distribution to domestic, commercial and industrial users. The funding is being made available by the International Finance Corporation , Standard Chartered Bank and South Africa s Standard Bank . Many hydro power projects in Uganda , comprising Sinohydro s 600 MW Karuma hydro power plant and China International Water and Electric s 185 MW Isimba power plant, are likely to come on-stream in the next half decade. Uganda has seen a development in its electricity supply following commissioning of the 250 MW Bujagali hydroelectric power station and Uganda may even begin exporting power in the region when large-scale Chinese-funded power projects come on-stream. Umeme s planned upgrade could assist decrease losses to the agreed regulatory target of 23% of energy purchased from 26.1% recorded in 2012.

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Gwokto La'Kitgum

"Even a small dog can piss on a tall Building", Jim Hightower