Umeme was incorporated on 6 May 2004 and was subsequently awarded a 20-year concession of the Ugandan Electricity Distribution Company Limited’s (“UEDCL”) distribution assets, as a result of an international bidding process. Umeme’s largest shareholder is currently the National Social Security Fund of Uganda (“NSSF”) with 23.2% of shares, followed by several financial investors (Allan Gray – 10.0%, Kimberlite Frontier – 8.9%, Utilico Emerging Markets - 7.6%). IFC holds a 2.8% shareholding in the Company. Umeme is listed on the Uganda and Nairobi stock exchanges

The Project is expected to cost up to US$ [325] million, which the Company plans to finance with a combination of debt and internal cash generation. The total debt will amount to a maximum of US$[70] million that IFC is expected to arrange, including a senior loan for up to US$[30] million from IFC’s own account, and up to US$[40] million to be mobilized from other lenders.

Umeme’s electricity distribution network covers the main urban centers of Uganda.                                                   

   This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability (2012). The company’s operations have limited environmental and social impacts, and these are site-specific, temporary and not significant. Impacts associated with the existing operations and proposed network upgrades and enhancements and implementation of smart meters can be avoided or mitigated by adhering to recognized performance standards, operating procedures, guidelines and design criteria as described in the sections below.

Key issues related to this project include: the prevention of fatalities and injuries to operations staff, contractors and the public resulting from exposure to energized transmission lines; management of the disposal of PCB contaminated transformer oil; disposal of chemically treated wooden utility poles and improvement of waste management practices through consistent implementation of an environmental management system.