KFW BANK WITHHOLD FUNDS FOR UGANDA’s NYAGAK POWER PROJECT

German bank Kfw has withhold its funds for the construction of uganda’s nyagak power project due to incomplete financial closure from project developers.

The fund which is for the construction of the nyagak power project has been hold due to delay by the project developers. The money is in the hands of Kreditanstalt für Wiederaufbau (KfW), a german development bank. The project developers are support to raise debt finance to build the Shs70 billion-project.

KfW has set aside €8 million (about Shs36 billion), of the $19.39 million (Shs70 billion). The bank which is a co-partner of the project has decide to channel its money elsewhere. The reason was that the loan was taking too long to do financial closure.

State minister for Energy, Simon D’Ujanga said “Nyagak III has a problem. He said that KfW have withdrawn their support for this project as the  financial closure was taking time.”

Different source in the country has blame the Parliament for the project not pushing through. The blame for the parliament was that they did not focus on the project instead trying to limit age for presidential candidate. Instead of focusing on all foreign loan requests, they were instead ‘consulting’ on the amendment bill.

The withdrawal of KfW will surely hurt the country as they are looking for a way to close the gap.

For more information, go through the following article on GambetaNews.