ARPE Ltd.

Debt : July 2024

BIO has granted a USD 12 M loan to Achwa 1, a 42 MW run-of-river hydropower plant in Uganda.

Amount

$ 12,000,000.00

Type of investment

Debt

Development impacts

Access to basic services & goods
Fight against climate change

Beneficiary locations

Africa: Uganda

Investment field

Infrastructure

Activity

DD.35.112 Production of electricity: hydropower

Organisation

ARPE Ltd.

Domicile

Uganda

More investments in

ARPE Ltd.

Debt € 8,236,550.00 (2016)

The transaction consists of the 13-year financing of an operational 42 MW run-of-river hydropower plant in Northern Uganda, Achwa 1, completed in 08/2021, owned by the SPV ARPE Ltd.

ARPE also owns the similar 41 MW hydropower plant Achwa 2 nearby, financed by a DEG-led DFI consortium in 2016, including BIO for an amount of USD 9.7M, completed end of 2019.

Both plants were only fully connected to the national grid in November 2023 due to a 4-year delay in the construction of the transmission line.

ARPE’s shareholders are the Africa Renewable Energy Fund managed by Berkeley Energy, and SIPA Holdings.

Achwa 1 will provide 161GWh of renewable Energy in Northern Uganda. Achwa1 and 2 have reached deemed commissioning in 2019 and 2021 under a 40-year take-or-pay concluded between ARPE and the Government of Uganda-owned off-taker Uganda Electricity Transmission Company Limited.

Development impacts

Access to basic services & goods
The annual electricity production of Achwa 1 (161 GWh) equals the annual consumption of 750,000 Ugandans. Achwa will be connected to the grid through the Achwa/Gulu/Lira transmission line. This line will provide energy to areas where electricity access is low.

The population with access to electricity in urban areas has increased from 26.7% in 2016 to 57.3% in 2022. In rural areas, electricity access is 10%. Nationwide, only 22.1% of the population has access to electricity.
Fight against climate change
Avoidance of ca. 18,000 tons of CO2 per year (based on expected annual production of 161 GWh).

E&S Impact

ARPE has agreed to

Carry out a physical climate risk assessment;
Improve on OHS, working conditions and the HR policies & procedures;
Improve the external grievance mechanism and the grievance mechanism for workers;
Develop/update the water and energy management plan and the material site restoration plan;
Undertake a project level greenhouse gas assessment;
Improve access roads and provide road safety training;
Improve biodiversity monitoring and management; and
Engage a cultural heritage specialist to update the Cultural Heritage Plan

Situation at the time of investment

As the construction of the hydropower plant was completed in 2021, the main risks are related to the plant operations, as well as to potential legacy issues regarding the permit, land acquisition, working conditions and biodiversity.

The project has an E&S policy, ESMS and dedicated E&S staff for the management of these environmental and social risks.

Risk Category: B