An Intending Developer is expected to submit a qualifying application for a Generation and Sale of Electricity License after concluding a full feasibility study and activities related to the development of the proposed power project.

Application for a License to generate and sale electricity

To undertake the development and implementation of a power project, the Intending Developer applies to ERA for a license to generate and sale electricity. This application is made through submission of a qualifying license application that meets all the requirements.

Application processing timelines

Processing a license application to develop a power project takes a prescribed 180 days from the date of receipt of the application. The application goes through the following processes.

  1. Document deficiency assessment and notification of completeness. This is done within [30 days] from the date of receipt.
  2. Any required clarifications to the developer are done within  [30 days];
  3. A site inspection [3 days];
  4. A public  notice of license application is run in the local newspaper of wide circulation and Uganda gazette for a period of 30 days [the notice is run within 45 days  from the date of receipt of the license application];
  5. A Public Hearing is held in the project affected community within 30 days from the end of the public notice period; and,
  6. Consideration  by the Authority for a decision;

Requirements of license application

The completed license application accompanied by the following document:-

  1. Three hard copies and one soft copy of the license application, filled-in and duly signed forms together with all the supporting documentation using the license application form;
  2. Letter from your main bank with details of relationship;
  3. Letters from all mentioned financing references attached;
  4. Proof of payment of the license application fee (USD 3,500 exclusive of VAT),  see schedule for fees;
  5. Project time plan (using Gantt chart format provided, for hydro/biomass/ bagasse);
  6. Declaration of Intent between project partners to cooperate during the project implementation phase;
  7. Documentary evidence of contacts/consultations with local authorities
  8. Letter from insurance company that construction insurance has been or will be provided;
  9. Letter on assurance that correct information has been provided in the application;
  10. Letter with declaration that the Applicant and its partners have not been involved in any irregularities (e.g. bankruptcy, fraud, corruption or grave professional misconduct); and,
  11. Financial Model with data for applicant and partners and for project (using Financial Model Template).

Technical Information

  1. Capability statement of lead applicant and partners;
  2. Curriculum Vitae (CVs) of key team members in the CV format provided;
  3. Terms of Reference for key team members
  4. Project references of lead applicant and partners in the reference format provided;
  5. Feasibility Study Report using the format provided | Small Hydropower |  Biomass | Bagasses;
  6. Environmental and Social Impact Assessment Study Report using the format provided;
  7. Resettlement Action Plan using the format provided;
  8. Stakeholder Engagement Plan using the format provided [insert link];
  9. National Environment Management Authority (NEMA) Environmental Approval;
  10. Water Abstraction Permit issued by the Directorate of Water Resources Management (DWRM) for hydro power project;
  11. Water Construction Permit issued by DWRM for hydro power project;
  12. Permit to undertake an activity on a river bank which is issue by NEMA where applicable;  
  13. Business Plan using the format provided;
  14. Power Purchase Agreement initialed by UETCL and applicant using the standardized PPA | Standardized PPA for Hydro;
  15. Agreements with fuel suppliers (where applicable);
  16. Agreements with landowners;
  17. Map(s) of project area (1:50,000); and,
  18. Project layout map/plan with access roads.

Legal Information for Applicants and All Partners

For Private Sector Applicants:

  1. Certified copies of Certificates of Incorporation or Certificate of Registration for foreign companies;
  2. Certified copies of the applicant’s Memorandum and Articles of Association;
  3. Certified copy of Form No. 7 (particulars of Directors and Secretary of the Company);
  4. Certified copy of the Certificate of Incorporation of the applicant’s technical partner;
  5. Certified copies of the Memorandum and Articles of Association of the financial partner/sponsor;
  6. Certified copies of registered documents with Registrar of companies at submission;
  7. Memorandum of Understanding between the applicant and the project sponsor;
  8. Memorandum of Understanding between the applicant and the technical partner(s);
  9. Company structure and ownership;
  10. Certified Audited Financial Statements of the applicant and all partners for the last three years.

FOR NGOs AND CBOs:

  1. Certified copies of the Certificates of Registration;
  2. Certified copy of the Constitution;
  3. Certified copy of the partners’ Memorandum of Understanding/Declaration of Intent to cooperate;
  4. Certified copy of the Certificate of Incorporation of the applicant’s technical partner;
  5. Certified copies of the Memorandum and Articles of Association of the financial partner/sponsor;

Award of License

The decision of the Authority on the license application is communicated within 48hours from the date of the Authority meeting. Where an award of the license is granted, it is subjected to the following requirements which have to be fulfilled within 30 days from the date of issuance of the License instrument:-

  1. Posting of two Performance Bonds. The first bond equivalent to USD 5000 per MW is for securing financial close and start of construction as per the scheduled start of construction date. The second bond equivalent to USD 2,500 per MW for secureing  the Commercial Operations Date (COD) as per the scheduled COD.
  2. Submission of a revised feasibility study implementation time plan;

Obligations of Licensed Company

Upon issuance of a license to an intending developer, the developer has to implement the project and provide ERA with evidence of progress using the template provided (Licensed project quarterly progress report template).  A template is provided for each technology as provided below:-

  1. Licensed project quarterly progress report template – small hydro | Construction | Operation;
  2. Licensed project quarterly progress report template – biomass | Construction | Operation; and'
  3. Licensed project quarterly progress report template – bagasse | Construction | Operation.