Norway's SN Power AS is to buy out SG Bujagali Holdings Ltd's (SGBH) partial interest in the 250MW Bujagli project in Uganda in a move that SN Power hopes will help provide a platform for the company to develop additional hydropower projects in Sub-Saharan Africa.
Located near Jinja, Uganda, Bujagali was developed, financed and will continue to be operated by Bujagali Energy Limited (BEL), which was owned by affiliates of the Aga Khan Fund for Economic Development (AKFED), SGBH and the Ugandan Government. AKFED and the Government will retain their interests in the project.
"SGBH has owned its interest in the Bujagali project in Uganda for eleven years, through initial development, construction and full operation and we are extremely proud of the contribution the project has made - in partnership with the Government of Uganda - in catalyzing the transformation of the country's power sector," commented Thomas DeLeo, Director, SGBH. "Now that we have completed our goal of proving Bujagali's operational strength with operations above a 99% contractual availability over the past 3.5 years, SN Power will be the ideal partner to continue this legacy for Uganda, given its world-class operating capabilities, global portfolio, financial strength, and proven commitment to the highest social and environmental standards."
"SN Power looks forward to a strong and enduring partnership with the Government of Uganda, as well as the operating and lending partners of Bujagali Energy Limited, in contributing to the critically important goals of materially enhancing Uganda's installed generation capacity and providing a greater share of Ugandans with access to electricity," added Torger Lien, Chief Executive Officer, SN Power. "SN Power is seeking a long-term investment in Uganda that will sustain Bujagali's transformational, positive impact."
The Bujagali Hydropower Project is widely considered to be one of the most successful public private partnerships in the power sector in Sub-Saharan Africa and has been used as a model for subsequent projects in the region. Bujagali was commissioned in August 2012, putting an end to years of constrained economic growth caused by an insufficient and unreliable power supply in Uganda.
