Vidullanka signs further agreements to secure Ugandan investments

Vidullanka PLC which had entered into a power purchase agreement with the Ugandan government for a 6.5 MW small hydropower project has signed further agreements to protect its investments and receive financial support, according to a filing to the Colombo Stock Exchange.
A previously planned implementation agreement was signed with the Ugandan Ministry of Energy and Mineral Development to provide improved state-protection for Vidullanka’s Ugandan subsidiary Muvumbe Hydro Limited, its investors and financing institutions.
Further, a Developer Financing Agreement was signed with KfW Bank of Germany, which on behalf of the Government of Uganda would provide Muvumbe Hydro with a US$ 4.5 million grant under the Lighting Africa programme.

The grant is broken down into a payment of US$ 1.92 million upon commissioning the power plant, and US$514.85 million annually for the first 5 years of operation.
This is Vidullanka’s first overseas venture and it will be a stepping stone for the firm to expand business further into East Africa, a region rich in hydro resources.