SN Power Completes Investment in Bujagali Hydropower Project
SN Power AS and SG Bujagali Holdings announced the completion of the acquisition of SGBH’s partial interest by SN Power in Bujagali Energy Limited, owner of the Bujagali Hydropower Project. The roughly two-thirds stake in the project has been acquired for approximately USD $277 million.
Bujagali, a 250 MW hydropower facility located near Jinja, Uganda will continue to be operated by BEL. BEL’s other shareholders are affiliates of the Aga Khan Fund for Economic Development and the Government of Uganda, both of which will retain their interests in Bujagali. SN Power will, with their experience from operating other hydropower projects around the world, contribute to an effective operation of Bujagali.
The investment by SN Power follows the project’s successful refinancing with its lenders – including development finance institutions such as the International Finance Corporation and African Development Bank – which reduced Bujagali Energy Limited’s annual debt-servicing payments, lowering the tariff of electricity produced by the hydropower plant.
Today’s announcement builds on the positive impact the Bujagali Hydropower Project has had on the Ugandan economy since it was commissioned in 2012. Bujagali generates almost half of Uganda’s energy supply by providing clean, reliable base load energy. The cumulative inception-to-date savings from Bujagali are USD $1.9 billion and the cumulative CO2 emissions reductions are approximately 5.7 million tons due to the displacement of diesel generated electricity with hydropower. In 2043, Bujagali will be transferred to the GOU for one US dollar with an expected remaining life of 70+ years.
Torger Lien, CEO of SN Power said: “I am excited by this agreement. It is good for all parties and ensures Uganda clean and stable energy for several decades in the future. It is also proof of our commitment to the long-term strategy on focusing on investing in sustainable hydropower projects in developing markets across Africa and Asia.”
Sean Klimczak, Senior Managing Director, Blackstone, said: “We are very proud of the pioneering role we were able to play as an early developer and investor in Bujagali and the project’s many contributions to Uganda, from enhancing power generation to improving the competitiveness of the manufacturing sector. We remain grateful for the opportunity to partner with the GOU and we are confident that AKFED and SN Power are the best possible stewards for Bujagali going forward.”
Bilal Khan, Managing Director, Blackstone, stated: “Bujagali is a testament to Blackstone Energy Partners’ ability to develop commercially successful greenfield power generation facilities in high-growth countries around the world, leveraging experienced management teams and working closely with local stakeholders. The strategy we crafted together with Sithe management over a decade ago has served as a model for our relationships with management teams currently engaged in power development initiatives in other regions, such as Fisterra Energy in Latin America, GenX in Southeast Asia and Zarou in the Middle East & North Africa.”