Status of the World Bank PRG Facility

In 2014, a Partial Risk Guarantee (PRG) facility in support of small scale renewable projects in Uganda was approved by the World Bank Group Executive Board. The PRG facility was structured specifically to align with the existing GET FiT systems used to implement, manage and monitor the portfolio. The PRG facility comprised three complimentary risk-mitigating components; 

  1. Facilitate the provision of short term liquidity support to the benefit of UETCL’s Power Purchase Agreement obligations.
     
  2. Termination compensation for events of governmental/utility default under the PPA / IA.
     
  3. Commercial debt guarantee. 

Due to various reasons, GET FiT developers dis not utilize the PRG facility.  In some aspects, this can be viewed as positive, indicating that the investment climate (hereunder the regulatory, technical and financial frameworks) of the Ugandan power sector was sufficiently reliable and stable for developers to manage without it.