Uganda: BGFA 5th Call for Proposals [Up to EUR 6.3 Million available]

Deadline: 4-May-23

The Beyond the Grid Fund for Africa (BGFA) Call for Proposals in Uganda is now open and invites interested private sector companies to apply for funding.

BGFA5 aims to incentivise private companies, so called Energy Service Providers (ESPs), to scale up innovative sustainable businesses and thereby accelerate access to affordable and clean off-grid energy for customers living in underserved areas in Uganda. The indicative individual contract size is expected to be between EUR 1 and EUR 4 million.

To receive funding, ESPs are required to engage in selling and delivering affordable and renewable off-grid energy services directly to end consumers in an enduring and sustainable manner. Applicants are free choose to apply for BGFA5 funding for the provision of one type of off-grid solution (Standalone Solar Home Systems, SHS; Mini- /Micro-grids; or Pure Productive Use Energy, PPUE). Each of these solutions in turn, can use different technologies and business models for electricity generation and the provision of energy service subscriptions (ESS).

Under BGFA5, only Energy Service Subscriptions (ESS) that remain active will be considered and counted towards the deployment targets. For the PPUE category, somewhat different approach may be used depending on actual solutions in line with the main rule. BGFA5 offers a financial incentive (subsidy) per established ESS while noting that ESPs will need to provide matching co-financing equalling a minimum of the BGFA total incentive. BGFA5 is testing a new, single-stage and generally simplified process, in which ESPs are requested to submit an application with streamlined requirements while still maintaining the BGFA approach.

Applicants should be able to show that they either by themselves or through proposed partnerships, they have sufficient resources and competence and prior relevant and sufficient professional market experience of working in off-grid markets either in Uganda or in one or more other SSA countries:

• Standalone/SHS category
  • A minimum of 12 months’ relevant operational experience in Uganda or other SSA country; and
  • Deployment of at least 2,000 ESS in Uganda or 10,000 ESS in another, specified SSA country.
• Other Standalone solutions (Nano-grids/hub and kiosk models/charging stations).
  • A minimum of 12 months’ relevant operational experience in Uganda or another SSA country; and
  • A minimum of 10 active systems totalling 200 ESS (Nano-grids) or, for kiosk/hub-based models, at least 5 operating kiosks/hubs across their operations in Uganda and/or other SSA countries with no less than 1,000 returning rental customers/subscribers.
• Mini-/Micro-grid category.
  • Successful deployment of at least 1 privately owned/operated site serving at least 40 ESS in Uganda or at least 2 privately owned/operated sites serving at least 500 ESS in another, specified SSA country.
• Pure Productive Use of Energy, PPUE category.
  • Successful deployment of at least one of the following in either Uganda and/or another SSA country
    • 200 pumps (with or without batteries) and/or irrigation systems and/or fridges/freezers;
    • 2 cold rooms/cold storage facilities/cold chain logistics projects (combinations allowed);
    • 1 pilot project for any one of the other identified PPUE sub-categories (water filtration and bottling/agro processing/agro value chain/raw material transformation/e-mobility).

Applicants who do not themselves have this experience, may rely on experience within their corporate group provided the entity relied on is majority owned (>51%) within the group and the ability of the BGFA contract counterpart to leverage the experience can be demonstrated through management structures and/or clear operational linkages.

Funding Information

• BGFA5 offers Applicants the chance to compete under the Uganda Country Programme for Funding Lot #12, with indicative funding of up to EUR 6.3 million in total. Additional funds may become available. Implementation is expected to start in 2023 and end in 2027.
• BGFA5 aims to incentivise private companies, so called Energy Service Providers (ESPs), to scale up innovative sustainable businesses and thereby accelerate access to affordable and clean off-grid energy for customers living in underserved areas in Uganda. The indicative individual contract size is expected to be between EUR 1 and EUR 4 million.

Projects

• Proposed projects should use one or more of the renewable energy sources and/or technologies listed below for electricity generation. Certain technologies for generating renewable sources for energy production (e.g. digesters) are also eligible for BGFA financing.
  • Solar photovoltaic (PV)
  • Wind
  • Hydroelectric
  • Sustainable biomass
  • Bioethanol
  • Biogas
• ESPs are required to employ modern systems, hardware and software that comply with relevant industry-technical standards and meet all relevant statutory standards and regulations in Uganda.

Geographical Focus

The BGFA Country Programme for Uganda aims to strike a relevant balance between increasing the number of electricity connections in rural and peri-urban areas, achieving overall development impact, and accelerating sustainable off-grid market development. To this effect and in an effort to reduce existing geographic inequalities and improve financial inclusion of underserved populations in Uganda, BGFA5 (like BGFA3) has tailored an approach that incentivises geographic inclusiveness.

ESS sold in Kampala district are not eligible for BGFA5 financing, and do not count towards the total number of contracted ESS.

Eligibility Criteria

• Applicants applying for BGFA5 funding shall be for-profit ESP companies/entities selling energy and/or energy-related PUE services to end-consumers. Applicants must already be legally incorporated and validly existing in Uganda or commit to being incorporated and registered as such, to Nefco’s satisfaction prior to contract signing. Individual persons or groups of persons (who are not legally incorporated and registered as a company in the Project Country) are not eligible for BGFA5 funding.
• However, Applicants are allowed to enter into various types of project implementation partnerships with for-profit and non-profit entities, community-based organisations and other non-commercial entities. Information on any listed companies will be required in the application if applicable.
• Applicants must provide relevant agreements on partnership arrangements to Nefco’s satisfaction at the latest prior to contracting. Responsibility for the project implementation is to be agreed and defined to Nefco’s satisfaction and the arrangements need to comply with Nefco’s general policies and procedures as well as with BGFA requirements. Applicants are not allowed to include government entities, public agencies and/or donors as project implementation partners.
• Applicants and all partners should be in compliance with all tax, regulatory and legal frameworks and laws in Uganda or in their home country.
• Minimum requirements The Applicant must demonstrate:
  • Turnover12 of at least 15% of the requested BGFA Funding but in any case minimum of EUR 300,000 during the last fiscal year or existing equity matching the requested BGFA5 funding; and
  • Current ratio with a minimum value of one or higher; and
  • Equity ratio of at least 15%.

For more information, visit BGFA.