BGFA to Provide Funds for Off-grid Solar Projects in Uganda

  • The Beyond the Grid Fund for Africa has launched a call for proposals for developing off-grid rural electrification projects in Uganda.

  • The BGFA intends to invest $20.7 million under the BGFA3 initiative.
  • Selected companies will also receive technical assistance and business support from the BGFA.

The Beyond the Grid Fund for Africa (BGFA) has launched the third call for proposals (BGFA3) for off-grid providers in Uganda. Developers who are successful in the bidding process will receive grants for the development of off-grid electrification projects.

The application process is divided into two stages: a pre-qualification stage and a final application stage. The pre-qualification stage will verify that applying companies meet the key eligibility criteria, including meeting minimum technical and financial capacity requirements of the BGFA3.

This third call aims to commission projects that will increase electricity access to about 3 million rural dwellers in Uganda via 600,000 new connections. It is expected that the project will significantly increase the rural electrification rate in a country as the United States Agency for International Development (USAID) currently estimates that 89% of the rural population lack access to electricity.

Read also: 49 Communities to Receive Solar Mini-Grids in Uganda and Sierra Leone

The BGFA intends to invest $20.7 million under the BGFA3 initiative, split into three funding packages. Each developer is expected to receive between $1.4 and $4.8 million depending on the batch, according to the BGFA. The funds invested will be provided by the Swedish and Danish governments.

The Nordic Environment Finance Corporation (Nefco) manages the BGFA. Nefco has stated via the project timetable that about ten contracts will be signed by Q2 2022. Selected companies will also receive technical assistance and business support from the BGFA, including advice and support in project monitoring, evaluation and financing.

The deadline for applications is June 22nd, 2021. Interested companies can access more information on the call for expressions of interest here.

 

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