Funding for Lower Nsogya mini Hydropower Project, western Uganda

Funding for Lower Nsogya mini Hydropower Project, western Uganda

Savimaxx Limited (www.savimaxx.co.ug) intends to develop a mini hydropower project on the River Nsongya, Kabarole District, western Uganda. The company is looking for investors to finance the construction of a mini hydropower plant at the site in Kadidimo. The plant will produce 9.2 MW of power, which will be sold at commercially viable prices to the state-owned national power transmission company. The project will be based on a conventional run-of-river solution, driven by a flow-diversion weir, closed headrace channel, forebay, penstock intake and powerhouse with electro-magnetic plant. ?

The Cost of investment is expected to be US $ 23 million Investment structure: Finance/Equity
Internal Rate of Return (IRR): 12.0%
Payback period: 10 years
Available documentation: Pre-feasibility study and business plan

Environmental impact. The project is located in a thinly populated rural farmland. The project infrastructure will be located on farmland, which will need compensation and relocation of a few project affected persons. The project area has no known environmental sensitivity apart from the powerhouse likely being located outside the boundary of Kibale National Park. Both a detailed Environmental Impact Assessment and Resettlement Action Plan will be carried out to mitigate project environmental impacts and use the best practice of compensation and resettlement of project affected persons respectively.

Power purchase agreements are granted for 20 years on a Build-Own-Operate-Transfer basis for hydropower stations over 10MW. Power stations below 10MW are operated on Build-Own-Operate. Supported by World Bank, the government provides 100% grants for grid link-up transmission lines.

 

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