Insurance and financial services group Jubilee Holdings has won a joint 30-year concession deal to operate Uganda’s Bujagali hydro-electric power project, helping to diversify its revenue streams with the potentially lucrative contract.
The company, which owns Jubilee Insurance, is a joint shareholder in the 250-megawatt Bujagali Energy Limited through its subsidiary, Jubilee Investment Company.
The Ugandan government, US-based Hedge Fund Blackstone and the Aga Khan Fund for Economic Development are the other shareholders of the project that was commissioned in October 2012.
“We will earn a share of the profits generated by the project during the period of the concession,” Jubilee board chairman Nazir Juma told the Business Daily in a telephone interview from Mauritius.
Jubilee Holdings is primarily listed on the NSE and also cross-listed on the Uganda and Dar es Salaam bourses. Mr Juma said the build-operate-transfer Bujagali concession started running in October last year.
Jubilee’s effective equity interest in the Bujagali project is not disclosed.
Building of the Bujagali plant lasted five years, with the partners contributing to the construction cost of $900 million (Sh78.3 billion).
The project, which more than doubled Uganda’s energy output, will see Bujagali sell electricity to the country’s power distributor under a power purchase agreement negotiated with the Ugandan government.