Nyamwamba II Hydro Project Achieves Commercial Operation
Kasese, Uganda – April 4th, 2022:
On 17th March 2022, the Nyamwamba 11, 7.8MW hydropower project has reached PPA Commercial Operation Date (COD). The Uganda Electricity transmission Company limited – UETCL awarded the completed powerplant a COD letter on the 17th of March 2022 after successfully completing testing and commissioning. The project is Serengeti Energy’s second hydro project on the Nyamwamba river, in Kasese, western Uganda and the third hydro project of Serengeti Energy to become operational in the country. It will provide clean and reliable energy to the local power supply.
The project’s total investment cost is around US $22 million and is 100% owned by Serengeti Energy.
The Nyamwamba II project is part of the efforts from the Ugandan government to use renewable energy to strengthen and diversify the country’s electricity infrastructure. The new capacity will support the local government to reach its 1 00% renewable energy target for Kasese district.
Construction of the project commenced in October 2019 and was faced with several challenges brought about by the COVID-19 pandemic. The project development and construction teams and their advisors were up to the task and surmounted the challenges to complete the project.
The Balance of Plant (BoP)/civil EPC contractor is SAEMS Hydro of Sri Lanka while Andritz of Germany has been the Electromechanical water to wire contractor and Zutari the owners’ engineer.
The Regional Liquidity Support Facility (RLSF) an initiative, by KfW (German state-owned development bank) and African Trade Insurance Agency (ATI), to mitigate short term liquidity risks on independent power projects in Africa, is supporting the project and documentation will be executed shortly.
EAIF, the proposed financier of the project, obtained their final credit approval in February 2022 and financial close is targeted in Quarter 2, 2022.
Chris Bale, The Chief Executive Officer of Serengeti Energy, remarked that;
”Access to reliable and affordable electricity is a key prerequisite for economic development. The Nyamwamba II project demonstrates our strong commitment to renewable energy development in Uganda. We would like to appreciate the Government of Uganda, specifically the Ministry of Energy and Mineral Development of Uganda (MEMO) and UETCL, for their continued support in the development and construction of the project. A special appreciation as well to our shareholders KfW, Norfund and NDF that have been pivotal in making this project possible.”
More about Serengeti Energy
Serengeti Energy (previously known as rAREH) is an independent power producer developing, constructing and operating small to medium sized renewable energy projects up to 50MW in sub-Sahara Africa. Serengeti Energy provides early-stage development capital and long-term equity investment, together with expertise and experience in the development, financing, construction, and operation of power plants.
From our headquarters in Nairobi, supported by our offices in West Africa and South Africa, the Serengeti team presently manages a portfolio of 7 operational hydro plants and 2 projects under construction. In addition, the company is developing a significant number of further projects which will serve markets in Africa with affordable and clean power.
Serengeti Energy is backed its reputable shareholders being (i) KfW, the German state-owned bilateral development bank, (ii) Norfund, the Norwegian state-owned bilateral development bank, and (iii) Nordic Development Fund, a development finance institution owned by 5 Scandinavian governments.