(Ecofin Agency) - In Uganda, insurer Jubilee Holdings will inject an additional $44 million into the Bujagali hydro plant as part of its diversification in the East African region. This new investment follows a $54.2 million previously pumped in the project two years ago, in exchange for shares.

"We continue to search for high quality conservative investments that offer consistent and competitive returns and also provide a suitable asset-liability match to some of our longer term insurance liabilities," said Chairman Nizar Juma (photo).

With a capacity of 250 MW, the Bujagali hydroelectric power plant currently accounts for 50% of the country’s energy output. However, the high production cost, 11 cents per kilowatt-hour, has resulted in a significant increase in the national electricity tariff. To cut this tariff, it has been planned to raise $500 million to refund short-term debts.

Gwladys Johnson Akinocho