Skip to navigation Skip to main content Skip to site map

Projects

Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Umeme Ltd.
Project ID
4887
Fiscal year
2005
Status
Not Active
Guarantee holder
Globeleq Ltd.
Investor country
Bermuda
Host country
Uganda
Sector
Power
Gross exposure
 $40.5 million
Project type
Non-SIP
MIGA has issued $40.5 million in guarantees to Globeleq Ltd. of Bermuda and Eskom Enterprises (Pty.) Ltd. of South Africa covering their $45 million equity investment in, and shareholder loans to, Umeme Ltd. of Uganda. The guarantees are for 20 years and cover against the risks of transfer restriction, war and civil disturbance, and breach of contract.

Umeme will operate an electricity distribution concession in Uganda for 20 years. Globeleq will bring commercial and financial expertise to the consortium, while Eskom will provide much of the technical expertise required to turn around the underlying business. The distribution network consists of 13,000 km of high and low voltage overhead lines extending throughout the country, with most of its customers concentrated in the semi-urban strip from Entebbe through Kampala to Jinja.

The concession calls for Umeme to provide up to 60,000 new connections, reduce losses, and improve collection rates within the first five years. Service delivery will be improved by easing the overloading of lines and substations and replacing weak line poles. Access to electricity will also expand for households, schools, clinics, hospitals, and water systems. The more accessible and reliable power is expected to foster economic activity and generate fiscal revenues for the government.

MIGA’s participation in this project promotes South-South investments into an IDA-only country. The World Bank is also participating in this project via a $5 million guarantee serving as a backstop to the letter of credit facility, which forms part of the security package for the project.

 
Apply for an Investment Guarantee
The World Bank Group logo