The Uganda Energy Credit Capitalisation Company (UECCC) was established to provide financing options with the aim of facilitating investment in renewable energy projects.
It works with development partners and financial institutions to offer the following services:
- Partial risk guarantee for up to 15% of the project cost during the construction phase of a project.
- Bridge financing to cover interest payments during the construction stage of a project.
- Subordinated debt finance to address lack of equity held by project developers.
- Liquidity reficing to extend the tenor of loans. Upper ceiling is currently at USD 3m.
- Solar reficing for beneficiaries acquiring solar systems.
In addition, the UECCC offers various forms of technical assistance to independent power producers and financial institutions, including on how to address pre-investment barriers. In April 2014, the UECCC launched an open call for applications for hydro, solar, biomass and wind power projects of 1-20MW for early stage transaction advisory services with a total budget of EUR 1.5m ($2.0m).