In Uganda, Jubilee acquired 9.44% of additional shares in Bujagali Energy, which owns the Bujagali dam with a capacity of 250 MW. The insurer expects a stable and consistent return on investment despite the difficulties encountered by the entire sector.
The insurer Jubilee Holdings acquired 9.44% additional shares in Bujagali Energy Ltd (BEL) in Uganda. The operation, which cost $ 40 million, brings to 18.24%, the total shares held by Jubilee in the company. It acquired these additional shares from the energy company SN Power, which remains, with 55.45% of the shares, the main owner of BEL.
“We are delighted with this additional investment in the Bujagali hydroelectric dam and are confident that it will continue to provide us with a stable and consistent return on investment as has been the case with all of our previous investments,” said Nizar. Juma, president of Jubilee.
BEL owns the Bujagali hydroelectric dam with a capacity of 250 MW. The plant was built at $ 900 million thanks to a mix of loans and equity.
The infrastructure provides about 50% of the energy produced by the country. However, the high cost of producing this energy is one of the major problems in the Ugandan electricity sector. In addition, the plant faces financial difficulties in repaying the loans contracted for its construction. A situation that the government is trying to resolve with the support of several partners, including the World Bank.
Source: Agence Ecofin