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EKN issues its first buyer credit guarantee for an EPC-transaction in Uganda
For the first time, EKN is guaranteeing a buyer credit for an EPC transaction in Uganda. Together with the Polish export credit agency KUKE, EKN is enabling the financing of a major project to expand and strengthen the country’s electricity transmission network, involving Swedish suppliers.
The project comprises the construction of approximately 346 kilometres of 400 kV high-voltage transmission lines, two new substations and the upgrade of two existing substations. The investment will strengthen Uganda’s transmission network and contribute to the country’s development by providing a more reliable electricity supply to people and industries.
SEK is financing the transaction with a loan of approximately EUR 255 million to Uganda’s Ministry of Finance, Planning and Economic Development. Standard Chartered Bank is arranging the financing and is the beneficiary of EKN’s guarantee.
Kalpataru Power Transmission Sweden AB, together with its Indian parent company Kalpataru Projects International Ltd, is the EPC contractor for the project. Hitachi Energy is contributing with grid connection solutions and electrification expertise, alongside other Swedish suppliers, including Linjemontage i Grästorp AB.
“Being selected for a project of this scale and technical complexity is a strong testament to the specialist expertise we have built within high-voltage power infrastructure. The capabilities we have developed through complex projects in the Nordic market are highly relevant also in selected international projects. Together with leading Swedish suppliers, we are proud to contribute this expertise to strengthening Uganda’s transmission grid," says Sanjay Dalmia, Executive Director at Kalpataru Projects International Limited.
The project also includes significant supplies from Poland. The Polish export credit agency KUKE is reinsuring 39.6 per cent of EKN’s commitment, covering, among other things, the Polish supplies. The cooperation enables EKN and KUKE to jointly support exports from several countries within the same project and financing structure.
“This transaction marks a significant milestone in our collaboration with EKN, demonstrating the power of export credit agencies combining their resources to support large-scale global infrastructure projects. By reinsuring a substantial portion of this commitment, KUKE mitigates risks while enabling Polish suppliers to deliver expertise and equipment to Uganda. We are thrilled to see Polish businesses integrated into this high-profile international financing structure, proving our capability to support multi-national supply chains,” says Dorota Filant, Head of Infrastructure and Real Estate at KUKE.
”This transaction, which is EKN’s first EPC transaction in Uganda shows how export credit agencies can pool resources for major global infrastructure projects. In this case by reinsuring a substantial portion of the commitment with KUKE, EKN mitigates risks while enabling Swedish suppliers to deliver expertise and equipment to Uganda”, says Malin Tegnér Larsen, Acting Head of Infrastructure and Telecom at EKN.
