Run-of-river SHP with a planned installed capacity of 5.9 MW and 26.5 GWh in annual production, located in the Bundibugyo district. The Project secured investments of USD 15M, with USD 3.2M in GFPPM commitments.
The Project designs changed significantly during 2017. The most notable changes were the relocation of the power station adjacent to the Sindila SHP power station, which will now share the same station facilities including loading bay and power station crane, and substantial changes in the waterway arrangement and alignment. As a result, the Project now has the shortest headrace section, at 0.1 km in length, and the longest penstock of any of the GET FiT Projects, with nearly 4 km of pipeline! As a result, the Developer had to acquire more land, as well as update and obtain new permits, licences and approvals necessary to proceed. The changes were introduced to improve constructability, achieve construction efficiencies, and reduce Project costs.
As well as substantial delays due to changes in Project designs, the Developer has also consistently and repeatedly failed to comply with deadlines with respect to project development and environmental and social requirements. As a consequence, a financial penalty was imposed on the Project to incentivise the Developer to address the issues outstanding and to increase efforts to comply with Programme requirements. The penalty was applied by reducing the GET FiT subsidy allocated to the Project and is the first occasion during the implementation of the Programme that such a contractual mechanism has been utilised.
The EPC Contractor is common to both the Sindila and Ndugutu SHPs and, as mentioned earlier, benefits from sharing facilities and resources across both Projects. Construction activities commenced during Q2 2017, with the Developer aiming for commercial operation during Q4 2018. However, in addition to the ongoing Developer performance issues, the construction programme and terrain are challenging and a COD during Q1-Q2 2019 appears more realistic at this stage.