Uganda: Jacobsen awaits Namanve PPA renewal

Norway’s Jacobsen Elektro is waiting for the government to decide on renewal of the power purchase agreement (PPA) for its 50MW heavy fuel oil power plant near Kampala. Managing director Roar Millehaugen told African Energy the plant’s original PPA expired on 15 September 2014, but the company had agreed a six-month extension to March 2015, and was now awaiting a decision on the renewal. The government has the right to take over ownership of the plant, but would have to first repay Jacobsen for loans set up when finance for the project was first arranged, although the amount is undisclosed.