GuarantCo played a crucial role over a five year period in underwriting (at times for substantially larger amounts), structuring and executing the finance. This is the first time that GuarantCo has provided a joint guarantee with USAID and the first time that Nedbank has been the beneficiary of a guarantee from GuarantCo. In particular, GuarantCo worked closely with USAID to amend their standard form documentation in order to align it more appropriately with a project financed structure.
Kalangala Renewables consists of a 1.6 MW (nominal) hybrid solar and diesel power generation system, 33kv transmission system, low voltage distribution system and the installation of a prepaid metering system to households and businesses on the Island. This project is part of an integrated project with Kalangala Infrastructure Services.
At present there is no operational grid-based electricity supply on Bugala Island with most of the population, schools, institutions and businesses on the Island lacking access to reliable and affordable electricity. The extension of daytime activities, such as studying, will add to the Island’s productivity and education. More specifically, anticipated improvements include the following:
- Decrease in energy costs per kwh
- Access to more employment opportunities
- Improved literacy due to improved lighting
- Reduced time spent on collecting fuel
- Better healthcare through improved medications and sanitation measures
- Improved ability to preserve and market agricultural products
- Improved marketing of the island as a tourist destination thereby helping to diversify the Island’s economy.