GET FiT Uganda is a results-based Programme – that is, a subsidy is paid following the successful installation of power capacity and the delivery of power – and is therefore dependent on predictable commitments from sponsors in order to be successful. Since the commencement of the Programme in 2013, several changes to the portfolio structure and significant project delays have necessitated active follow-up and flexibility from all stakeholders. This requirement has indeed also been met by the GET FiT funders to date, enabling the Programme to deal with any arising uncertainties and risks in a relatively comfortable and pro-active manner.
To this end, four development partners have taken up the challenge and provided GET FiT with the necessary funding: Government of Norway, Government of UK (through BEIS and DFID), Germany (BMZ) and the EU (through EU ITF).
To date, EUR 93 million has been committed to the Programme.
Table 4 - Overall Donor Commitments to GET FiT
Note: Net amounts are based on funding disbursed to the Programme thus far, projected exchange rates for undisbursed funds and deduction of management fees.
Foreign exchange rate developments within the financial structure of the Programme reduced the overall budget by approximately 13 % as of mid-2015. Subsequently, a EUR 1.5 million budget buffer was introduced to cushion future decline in the EUR/GBP rate until remaining disbursements were made to KfW and converted in EUR. Reference is made to previous GET FiT annual reports. A limited amount of undisbursed donor contributions remains at this stage, currently equivalent to approximately 8 % of the total GET FiT budget and are therefore still subject to foreign exchange risk. GET FiT regularly monitors the relevant forex developments to allow for proactive actions if needed.