During the recently concluded COP28, in a move that aligns with its dedication to advancing sustainable infrastructure and supporting underserved regions, the Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG) company, announced a commitment of approximately USD 19 million to finance a groundbreaking 20MW solar PV project in north-western Uganda.
The project, named the Ituka PV plant, developed by AMEA Power, involves the construction and operation of a 24MWp/20MWac solar PV power plant in Ombachi, approximately 400km from Kampala, which will mark EAIF’s third investment in solar projects in Uganda and is set to significantly contribute to the country’s energy landscape.
The financing agreement, finalized during COP28, is a significant step toward achieving the Summit’s goals, particularly addressing Sustainable Development Goal 7 (affordable and clean energy) and Goal 13 (climate action). Owing to its capacity of 20MW, the power plant in the West Nile region will go a long way in reducing the region’s reliance on expensive and polluting thermal power, promoting sustainable development and climate resilience, and is set to be connected to the national grid in 2024, marking a historic moment for local communities and businesses currently grappling with electricity shortages.
Paromita Chatterjee, Director at Ninety-One, and the Fund Manager of EAIF, expressed excitement about the partnership with AMEA Power, emphasizing the potential to bring affordable and clean energy to West Nile communities, fostering economic growth and reducing dependence on carbon-intensive power sources.
The 20-year Implementation Agreement with the Government of Uganda and the Power Purchase Agreement (PPA) with Uganda Electricity Transmission Company Limited further solidify the project’s long-term commitment to providing sustainable energy solutions.
EAIF’s track record in financing solar power projects in Uganda, including the operational Tororo Solar PV plant and Soroti solar plant, demonstrates the fund’s commitment to sustainable development in the region. The total capital commitments by EAIF to Uganda now exceed $138 million.
As the sole lender to the project, EAIF’s commitment reflects its dedication to promoting innovative, low-carbon, and climate-resilient infrastructure in emerging markets. The success of the Ituka power plant will undoubtedly serve as a model for future sustainable infrastructure projects, showcasing the transformative impact that strategic investments can have on historically underserved communities.
This initiative not only contributes to Uganda’s electrification goals under the country’s vision 2040 but also sets a precedent for private sector-led sustainable development in the broader context of Africa and Asia.
