Standard Chartered facilitates EUR641.1 million of financing to Uganda Government

30 January, Kampala, Uganda: Standard Chartered, a leading global cross-border bank, has arranged EUR641.1 million of financing for three landmark projects in Uganda, which will support power generation, water supply and sanitation systems, and the upgrading of associated infrastructure. The signing took place today at the Ministry of Finance, Planning and Economic Development of the Republic of Uganda (MOFPED).

Proceeds of the financing will be used to fund the commercial contract for the construction of Karuma-Tororo Double Circuit 400 kV transmission line and associated substations. Standard Chartered acted as the Lead Arranger and Original Lender in the successful closing of a EUR342.5 million loan. The financing has been arranged with the support of Swedish Export Credit Agency, EKN (Exportkreditnamnden) and Swedish Export Credit Corporation (SEK), achieving competitive pricing and long tenors. This marks the first transaction for EKN in Uganda. This project aims to evacuate and distribute the power generated by the 600 MW Karuma Hydro Powerplant (HPP), built on the Nile River in the Kiryandongo district. This will contribute to Uganda’s objective of building a robust network, improving reliability and quality of supply and eventually contributing towards the economic development of the country. The financing also benefited from the support of KUKE, Poland’s ECA, providing reinsurance.

The financing also comprises of EUR115.8 million supported by the Islamic Corporation for the Insurance of Investment and Export Credit and structured as a Shari’ah compliant commodity Murabaha structure facility. Standard Chartered acted as Coordinator, Bookrunner, Mandated Lead Arranger, Investment Agent, and Lender for MOFPED. This will support the upgrade of Karugutu Ntoroko Road (56.5 km), Rwebisengo Link (8.2 km) and Ntoroko Town Roads (3.3km). The road upgrades support infrastructure development in the Albertine region, a key trade route linking Uganda to the Democratic Republic of Congo. The project is aligned with Uganda’s Vision 2040 and Uganda’s National Development Plan IV, where revenue from the growth sectors of Uganda’s economy, i.e. agriculture, hydrocarbons and tourism are viewed as a catalyst for Uganda’s economic transformation, industrialisation, infrastructure development (including rail and road), and transition into an emerging economy.

Lastly, EUR182.8 million will support a landmark water supply and sanitation systems project in Uganda. The proceeds will be used to reinforce the provision of drinking water to the Northern, Central and Eastern Regions of Uganda, by capturing water respectively from Lake Victoria, the Victoria Nile and Lake Kwania, then pumping and transferring to the Water Treatment Plant. The water will next be transported through pipelines to multiple Distribution Centres. It also includes the construction of sanitation facilities and a sludge treatment station. This financing is supported by China Export & Credit Insurance Corporation. Standard Chartered acted as Coordinator, Bookrunner, Mandated Lead Arranger, Facility Agent, Environmental and Social Coordinator and Lender for MOFPED. The proposed upgrade of the drinking water supply in Uganda, by the Ministry of Water and Environment, has been identified as a key project for the Government of Uganda and is also aligned with Uganda’s Vision 2040 which aims at transforming Uganda from a predominantly rural and low-income country to a competitive upper middle-income economy.

The Minister of Finance, Planning, and Economic Development Hon. Matia Kasaija said,“These projects will go a long way in supporting Uganda’s development trajectory by supporting evacuation of power from Karuma Hydro power plant to identified load centres like Tororo industrial park and facilitate regional power trade. This will help to avoid losses from unutilized power/deemed energy. The water project will definitely provide clean water to the project target areas and therefore improve people’s well-being.”

Sujithav Sarangi, Executive Director, Development & Agency Finance, Standard Chartered Bank, commented: “We are thrilled to be at the forefront of this transformational financing in Uganda, injecting vital capital into key initiatives, driving sustainable energy access, building reliable water services, and unlocking long-term economic growth in one of East Africa’s most dynamic markets. This infrastructure pipeline is a cornerstone for regional prosperity and we’re proud to be working with our valued partners on this impactful endeavour.”

This financing is another example of Standard Chartered’s commitment to the region and follows on from the Bank’s recent EUR183 million investments in the Uganda Strategic Towns Water Supply and Sanitation Project (STWSSP II), aimed at improving access to clean water and sanitation for growing urban populations.

— ENDS —

For further information please contact:

Denada Muka
Communications, Brand and Marketing Manager, Europe
Standard Chartered Bank
Tel: +44 7884476951
Email: Denada.Muka@sc.com

Standard Chartered
We are a leading international banking group, with a presence in 54 of the world’s most dynamic markets. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good.

Standard Chartered PLC is listed on the London and Hong Kong stock exchanges.

For more stories and expert opinions please visit Insights at sc.com. Follow Standard Chartered on X, LinkedIn, Instagram and Facebook.