SN Power AS (“SN Power”), the state-owned Norwegian hydropower company, and SG Bujagali Holdings, Ltd (“SGBH”), a Mauritian company indirectly owned by investment funds managed by affiliates of Blackstone, have agreed on the sale of SGBH’s partial interest in the Bujagali Hydropower Project (“Bujagali”).
Bujagali is a 250 MW hydropower facility located near Jinja, Uganda. It was developed, financed and will continue to be operated by Bujagali Energy Limited (“BEL”), which is owned by affiliates of the Aga Khan Fund for Economic Development (“AKFED”), SGBH and the Government of Uganda (“GOU”).
The affiliates of AKFED and the GOU will retain their interests in Bujagali. The project’s debt financing arrangement with its lenders, including development finance institutions such as the African Development Bank, World Bank Group and European Investment Bank, will not be affected by the transaction.
The acquisition will provide a platform for SN Power to develop additional hydropower projects in Uganda and Sub-Saharan Africa.
Thomas DeLeo, Director, SGBH:
“SGBH has owned its interest in the Bujagali project in Uganda for eleven years, through initial development, construction and full operation and we are extremely proud of the contribution the project has made – in partnership with the Government of Uganda – in catalyzing the transformation of the country’s power sector. Uganda has incredible potential, and we have seen myriad ways in which Ugandan businesses and consumers have benefited from reliable electricity since Bujagali came online. Now that we have completed our goal of proving Bujagali’s operational strength with operations above a 99% contractual availability over the past 3 ½ years, SN Power will be the ideal partner to continue this legacy for Uganda, given its world-class operating capabilities, global portfolio, financial strength, and proven commitment to the highest social and environmental standards.”
Torger Lien, Chief Executive Officer, SN Power:
“SN Power looks forward to a strong and enduring partnership with the Government of Uganda, as well as the operating and lending partners of Bujagali Energy Limited, in contributing to the critically important goals of materially enhancing Uganda’s installed generation capacity and providing a greater share of Ugandans with access to electricity. With consistent power, businesses can grow, agricultural producers can prolong the shelf-life of their products, hospitals and clinics can better provide for their patients, and schools can keep the lights on for a new generation of students. SN Power is seeking a long-term investment in Uganda that will sustain Bujagali’s transformational, positive impact.”
