ATIDI Partners Dubai-based AMEA Power On 20 MW Ituka West Nile Uganda Limited Solar Project
The African Trade Insurance Agency (ATIDI) has, today in Dubai, announced its intent to support the 20 MW Ituka West Nile Uganda Ltd solar project developed by AMEA Power, a Dubai-based Independent Power Producer (IPP).
ATIDI will support the project via its Regional Liquidity Support Facility (RLSF) by providing payment guarantees for the benefit of the project on behalf of the Ugandan national power utility, Uganda Electricity Transmission Company Limited (UETCL).
According to a statement byMike Omuodo of Media Fast PR, the partnership was announced in a signing ceremony on the margins of the 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP28) in Dubai; it underscores ATIDI’s commitment to risk mitigation and project resilience in the dynamic landscape of sustainable energy initiatives.
“The RLSF policy, which will be in place for an initial tenor of 15 years, will cover up to six months’ worth of revenue for the IPP; signing of the RLSF policy is subject to the two parties agreeing on a final form of the policy documents to either party’s satisfaction. The electricity generated by the power plant will be sold to UETCL under the terms of a 20-year Power Purchase Agreement (PPA); once constructed, the project will connect to the national grid via a new high-voltage transmission line run by UETCL.
“RLSF is a liquidity instrument provided by ATIDI to renewable energy IPPs that sell the electricity generated by their projects to state-owned power utilities in ATIDI member states that have signed the RLSF Memorandum of Understanding. It notably protects small and mid-scale renewable energy projects against the risk of delayed payments by public offtakers. A joint initiative of ATIDI, KfW Development Bank and the Norwegian Agency for Development Cooperation (Norad), RLSF was created to help tackle climate change and attract investments by supporting renewable energy projects in ATIDI’s member states.
“This will be the first project considered for RLSF cover under Phase 2 of the initiative. Phase 1, which involved the issuance of a Standby Letter of Credit by a commercial bank as part of the product structure, was successful; supporting five renewable energy projects in Burundi, Malawi and Uganda. The 7.8 MW Nyamwamba II Run-of-the-River project, the one operational project that has benefited from RLSF support in Uganda, continues to perform well with no payment delays from UETCL.
“Uganda has made positive progress in increasing the electricity access rates, with annualized increases of 3% between 2010 and 2020. The electricity access rate currently stands at 42%, which is a notable improvement from the national access rate of only 12% in 2010. The national installed capacity stands at 1,346 MW, with the bulk of this being from hydro powered projects, leaving the country vulnerable to the negative impacts of climate change in the event of any prolonged drought that would result in poor electricity generation,” the statement stated.
The Chief Executive Officer of ATIDI, Manuel Moses, thanked AMEA Power for serving as catalysts for energy independence in Uganda.
“At ATIDI, we believe in fostering sustainable development, and one crucial avenue is supporting IPPs who propel diversification of Africa’s energy mix. Over the past years, Uganda has demonstrated remarkable strides in its energy sector, and we are proud to play a role in this transformative journey. Our recent collaboration with IPPs in Uganda is not just about power generation; it’s about empowering communities, driving economic growth, and fostering a sustainable future.
“Investing in renewable energy in Uganda is part of our pledge to deliver sustainable energy to all. We thank ATIDI for their support, which is crucial for the success of the project. Our solar project will not only help provide essential power to homes and industries but will also drive economic growth, creating jobs, and safeguarding the environment,” Aqueel Bohra, Senior Director – Project Development, AMEA Power said.
About ATIDI
ATIDI was founded in 2001 by African States to cover trade and investment risks of companies doing business in Africa. ATIDI predominantly provides Political Risk, Credit Insurance and, Surety Insurance. Since inception, ATIDI has supported USD78 billion worth of investments and trade into Africa. For over a decade, ATIDI has maintained an ‘A/Stable’ rating for Financial Strength and Counterparty Credit by Standard & Poor’s, and in 2019, ATIDI obtained an A3/Stable rating from Moody’s, which has now been revised to A3/Positive.
About the Regional Liquidity Support Facility (RLSF)
ATIDI and the German Development Bank, KfW, with financing from the German Federal Ministry for Economic Cooperation and Development (BMZ), launched the RLSF in 2017. The Facility was created to help tackle climate change and attract investments by supporting renewable energy projects in ATIDI’s member countries. In 2022, the Norwegian Agency for Development Cooperation (Norad) committed additional funding towards the continued implementation of RLSF. RLSF has a capacity of USD153.7 million and supports small and mid-scale renewable energy projects with an installed capacity of up to 100 MW (larger projects can be considered on a case-by-case basis) by protecting the projects against the risk of delayed payments by public offtakers; in turn improving project bankability and ensuring that more projects reach financial close.
About AMEA Power
Headquartered in Dubai, AMEA Power is a developer, owner and operator of renewable energy projects. As one of the fastest growing renewable energy companies in the region, the company is rapidly expanding its investments in wind, solar, energy storage and green hydrogen, demonstrating its long-term commitment to the global energy transition. AMEA Power has assembled a world class team of industry experts to deliver projects across Africa, the Middle East and other emerging markets.
