| Company | Kalangala Infrastructure Services Ltd |
| Sector | Multi-sector |
| Country | Uganda |
| Total Project Cost | USD 49m |
| PIDG Commitment |
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| Dates of PIDG involvement | 2005 – present |
Bugala Island, situated on Lake Victoria in Uganda’s Kalangala district, has undergone a transformation over the past decade. Previously one of Uganda’s poorest districts, residents of Bugala Island lacked safe regular access to the mainland, reliable electricity and clean water. This had constrained the growth of agriculture and fishing activities on the island and prevented the realisation of its tourism potential. The complexity inherent to multi-sector small-scale island infrastructure had deterred the private sector, requiring significant expertise to balance commercial viability and affordability.
In 2005, the residents of Bugala Island approached PIDG’s project development solution, InfraCo, for help in refurbishing and developing their infrastructure. In response, InfraCo led the design and development of Kalangala Infrastructure Services (KIS), a pioneering mixed utility company. KIS built and operates two modern roll-on roll-off ferries; upgraded the island’s 66km Luuku – Mulabana main road; is distributing clean water to 19 villages on the island; and has developed 1.6MW of hybrid solar-diesel power and has taken over operation of the Kalangala Town Council (KTC) grid.
InfraCo designed an innovative project financing package which blended various public and private financing instruments and mobilised support across PIDG in the form of technical assistance, debt and guarantee facilities necessary to deliver the ambitious project.
InfraCo worked with the Ugandan government to negotiate a ferry tolling scheme and to address legal and regulatory challenges associated with establishing Uganda’s first private mixed utility. GuarantCo played a crucial role in underwriting, structuring and executing the finance.
Access to safe, regular ferries has facilitated improved trade between Bugala Island and mainland Uganda. Access to power and clean water have supported the local fishing industry and access to clean drinking water has resulted in a fall in waterborne disease.
The project’s multi-sector revenue streams enable it to support the water supply system which would otherwise be highly challenging to finance and operate. Bugala island is thriving, with Kalangala among Uganda’s wealthiest regions. KIS has played a major role in this transformation.
The island recently connected to the mainland grid via Bukakata (near the KIS ferry landing site) . Electricity from the Ugandan national grid is derived from 92 per cent renewables.
