Under a Financing Agreements executed between Government of Uganda and the World Bank/IDA, UECCC is the Implementing Agency of the Financial Intermediation component that entails provision of credit support instruments to Participating Financial Institutions
The sub component entails:
- Provision of Working Capital Facilities on concessional terms to Participating Financial Institutions (PFIs) for on-lending as Working Capital Loans to solar companies. The targeted solar companies are those selling systems on credit (pay plan and Pay as you go) models. The aim is to alleviate the working capital constraints of these companies.
- Offering Guarantee facilities to PFIs in order to share the PFI credit risks associated with the provision of working capital loans to solar companies.
- Provision of lines of concessional lines of Credit to PFIs for on lending as end-user loans to eligible households and commercial enterprises for acquisition of solar systems.