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Mubuga

8.67MWp solar PV power plant will improve the energy supply of nearly 90,000 people in Burundi, while providing 300 temporary and 50 permanent jobs.

This ambitious project in Burundi involves the construction of a 8.67MWp solar PV power plant that is expected to increase the country’s baseload generation capacity by as much as 15%.

Located in Mubuga, in the Gitega Province, the development will also be the first grid-connected solar project by an independent power producer (IPP) in Burundi. Developed as a public-private partnership between the Government of Burundi and Gigawatt Global Coöperatief, the project will pave the way for other renewable energy projects in the country.

Last year, the project became the first REPP-supported grid-connected project to achieve financial close after Gigawatt Global and Evolution II Fund, managed by Inspired Evolution Investment Management, met all conditions included in the original financing agreement. Full construction began in January 2020.

It is estimated that the plant will supply the electricity needs of at least 87,600 people and businesses, and provide 300 part-time jobs during construction and up to 50 full-time jobs during the operational phase.

The developers also plan to construct a scalable mini-grid scheme alongside the project for the local community in Mubuga village as part of a corporate social responsibility initiative and will provide yearly support to the community to improve economic growth and living standards.

REPP has supported the development of the Mubuga project since December 2016. It has now agreed to provide additional funding for construction, via a construction bridge loan (alongside Evolution II Fund) and a subordinated term loan.

As the first of its kind in Burundi, the project has a strong demonstration impact, building capacity within government and strengthening political buy-in and support for small-scale renewables, thereby establishing a more viable market for renewable energy projects in the country.

Funding structure

Contracted date: 7 December 2016
Lending type: Development finance
REPP funding: Undisclosed

Contracted date: 17 December 2019
Lending type: Construction finance
REPP funding: Undisclosed

Contracted date: 17 December 2019
Lending type: Subordinated term loan
REPP funding: Undisclosed

The scale of impact the Mubuga project will have on ordinary people’s lives and businesses cannot be overestimated, and in the process will mark the dawn of a new era for renewable energy in Burundi. REPP’s support has made this possible. The project will be the model that will be followed by other foreign investors and will raise the image of Burundi for long-term investment by international financiers.
- Honourable Jean Jacques Nyenimigabu, senior adviser to the president and former MP from Mubuga