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UGANDA: The National Water and Sewerage Corporation (NWSC) - Financial Viability Support

The proposed technical assistance is to support Uganda's National Water and Sewerage Corporation (NWSC) in mobilizing domestic market finance, possibly through a bond issuance. A pre-feasibility study (PFS) undertaken with support from PPIAF demonstrated that access to domestic market finance was feasible. The study has established that NWSC is a well-run organization, which appears creditworthy, and could issue a medium-term note (MTN) without adversely affecting its financial performance. It also found that the markets would be supportive of the bond issuance to further develop the non-treasury bond market.

As a first step, NWSC opted to seek commercial financing for the projects being considered urgent. Following a review of financing proposals received from 20 local and regional banks, NWSC was able to secure Ugx 50 billion loan ($15 million) financing from one of the regional banks for a term of 5 years. Ongoing support from PPIAF is aimed at assessing the opportunities for scaling up private sector investment in water and sanitation.

Approved date2018-05-31
SectorWater
StatusApproved
Country
RegionSub-Saharan Africa
InstrumentSNTA