Background to Establishment of UECCC
In 1999, the Government of Uganda adopted the Power Sector Restructuring and Privatization Strategy. The strategy aimed to attract investment into the power sector in generation, distribution and access. A key feature of the strategy was the introduction of private sector participation in existing operations and in the financing and management of future investments.
UECCC was established to address financing barriers affecting effective private sector participation in renewable energy projects and programmes through financial intermediation.
UECCC is a Government institution set up under the Companies Act as a Company Limited by Guarantee and not having share capital. It was operationalised primarily to facilitate investments in Uganda’s Renewable Energy Sector, with a particular focus on enabling private sector participation.
Barriers to Effective Private Sector Participation
- Lack of project finance or long-term debt in the local market to finance renewable energy projects.
- Lack of sufficient equity on the part of project developers.
- Lack of technical capacity among local financial institutions to appraise renewable energy projects.
- Lack of early-stage financing and other transaction advisory services.
- Lack of interest among local financial institutions in financing renewable energy and rural electrification projects.