The European Investment Bank (EIB) and the African Development Bank (AFDB) have approved loans for the 250MW Bujagali hydro project in Uganda close on the heels of the World Bank greenlight on funding.
EIB has approved Euro 100M (US$135M) for the run-of-river project, which is due to be commissioned in 2011.
The AFDB has agreed to provide US$110M in loans to the scheme, which is to be built on the White Nile river.
The World Bank recently said it would provide US$360M in loons and guarantees for the hydro project.
The approximately US$800M hydro project is being developed by Bujagali Energy, which is a JV between Kenya-based Industrial Promotion Services (IPS) and US-based Sithe Global Power. As a scheme, Bujagali has been under development since the 1990s.
Recent studies have concluded that establishing the hydro scheme was the least cost option for adding extra power capacity in Uganda. Until it is built, the World bank has approved a further US$300M to support the power sector.
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