The GET FiT Program Uganda consists of three key instruments. Implementation of these instruments will be indepdently led by three different entities - Government of Uganda (represented by KfW), the World Bank and Deutsche Bank. However, implementation will be closely coordinated to minimize transaction costs and to maximize impact.
The GET FiT Premium Payment Mechanism is designed to make small-scale renewable energy generation projects (between 1MW and 20MW in installed capacity) promoted under the Renewable Feed-In Tariff (REFiT) system financially viable, thus enabling a large portfolio of projects to move to financial close and into implementation. GET FiT Premium Payments are additional payments per kWh, above and beyond the regulated REFiT tariff levels as published by ERA. Payments will be availed on a grant basis, following an open and transparent Request-for-Proposal process.
Led by Government of Uganda (represented by KfW)
Government of Uganda has officially requested the World Bank to explore the use of a Partial Risk Guarantee (PRG) mechanism for projects benefiting from the REFiT. The PRG would be used to facilitate the provision of short term liquidity support (Letter of Credit from a commercial bank). This will provide greater certainty over timely receipt of payments that are due from UETCL in line with the Power Purchase Agreement.
In addition, private developers will also be able to avail of further cover from the World Bank for other obligations of the government (including, for instance, guarantees on termination). Such further guarantees would be direct to lenders to projects. MIGA political risk insurance is also likely to be made available.
The timeline for preparation of the World Bank guarantee program will be driven by readiness of initial projects, as World Bank approvals will be for supporting specific projects.
Led by the World Bank.
Fore more information on the World Bank Partial Risk Guarantee, please click here