Regional insurer Jubilee Holdings Limited (JHL) has acquired an additional 9.44 percent stake in Bujagali Energy Ltd (BEL), increasing its shareholding in the Ugandan-based firm to 18.24 percent from 8.8 percent.
BEL is the special purpose company that owns the 250MW Bujagali Hydropower Project (“Bujagali”) which was built at an estimated cost of $900 million through a combination of debt and equity financing.
In a statement Tuesday, the insurance firm’s Chairman Nizar Juma said the increased investment in Bujagali is part of the insurer’s strategy to hold a diversified and conservative portfolio of investments totalling Ksh111.2 billion ($1.11 billion).
The Bujagali Hydropower Project is widely considered the most successful public-private partnership in the power sector in sub-Saharan Africa and has been used as a model for subsequent projects in the region.
Bujagali was commissioned in August 2012, putting an end to years of constrained economic growth caused by an insufficient and unreliable power supply in Uganda.
