Disbursement Projections

Committed disbursements from the GET FiT Programme go towards four purposes:

  1. project grants, with 50 % paid at commercial operation date and 50 % paid in the form of results based support over the first five years of operation, subject to actual generation,
     
  2. consultants under the Technical Assistance Facility for ERA,
     
  3. consultants for the overall management and monitoring of the Programme, and
     
  4. management fee to KfW.

Figure 23 illustrates the actual (up to and including 2018) and projected disbursements from the Programme. The projections are based on the status of the project portfolio and expected progress. Due to the provision of resultsbased disbursements during the first five years of operation for each project, the final payments from GET FiT will not occur before 2024.

 

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Figure 23 - Projected Annual Payments (Premium Payments and Consultants) under GET FiT

Note: Projections are subject to uncertainty, mainly related to individual project progress

 

For the disbursement projections, the main uncertainty relates to actual COD for the various projects. Delayed implementation of the portfolio has already shifted the disbursement profile of the Programme considerably.

With most projects now financially closed and under construction, future changes in the disbursement profile will be linked predominantly to construction related risks. There is also some uncertainty tied to the annual result-based payments for each project.

Since the developers will only be paid for what they are producing (with a cap at their planned average), significant under-production across the portfolio may lead to accumulation of excess funding.

The annual GET FiT Steering Committee (SC) meeting was held on April 24, 2018 in Kampala in the presence of representatives from the German Embassy, DFID, BEIS, the European Union, ERA, the Embassy of Norway, MEMD, KfW and the GET FiT Secretariat (Multiconsult).

During the meeting the current implementation status of the Programme was presented, and challenges relating to the grid integration and power evacuation were highlighted by the GET FiT Secretariat. This was complemented by an update of developments in the power sector by ERA and MEMD. A key topic of the meeting was the funding status, budgeting and disbursement of Programme funds – the SC concluded that no disbursements to projects will be made after 2023, which is in line with the initial window of GET FiT support. The SC also decided that an exception is
made for the Kikagati SHP, upon the consideration of transboundary issues the project was facing.

Figure 24 shows the relative shares of the various cost components under the GET FiT Programme, based on current budget reservations. Overall, approximately 10 percent of the overall funds are tied to management, implementation and the Technical Assistance Facility, while 90 percent of the total commitments are expected to be disbursed as premium payments.

 

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Figure 24 – Distribution of Budget Reservation of GET FiT Uganda