Uganda – Revolving Loan Fund for the Uptake of Improved Institutional Cook Stoves (IICS) in Schools

This NSP is based on the “Uganda Green Schools NAMA”. As part of integrated sustainable energy solutions for schools in Uganda, the NAMA identified a huge potential for GHG emission reductions through the introduction of Institutional Improved Cook Stoves (IICS). Under this NSP, IICS will be introduced in 15,750 Ugandan schools, which represents 75 per cent of all Ugandan schools.

The main barrier for investments into energy efficiency technologies is the cost of capital in Uganda. At the current Prime Lending Rate of around 25 per cent there is little interest in investigating opportunities and considering investments, especially in a public sector such as education. Therefore, a Revolving Loan Fund will be established to provide financing of investment into IICS. 2 different models are currently considered: provision of capital through the NAMA Facility to the revolving loan fund, which will then give out loans at no/low interest rates to schools or the creation of green funding lines with local/national banks, where the NAMA Facility will cover interest charged by the banks. A decision for one of the models (or a combination) will be taken in the DPP.

Twin set of institutional improved cook stoves in operation at a boarding school in the suburbs of Kampala, Uganda: Copyrights: Sören David Twin set of institutional improved cook stoves in operation at a boarding school in the suburbs of Kampala, Uganda: Copyrights: Sören David

The contribution of the NAMA Facility will help to transform the school sector by replacing inefficient cooking facilities with Institutional Improved Cook Stoves (IICS). 75 per cent of the schools will be financed through support of the NAMA Facility, for the remaining schools the Government of Uganda will provide funding.

Possible co-benefits include the reduction in forest degradation, increased health benefits, and improved economic conditions of schools (through the reduced need to purchase firewood).

Mitigation potential: The NSP targets annual emission reductions of 760,000 t CO2 per annum by year 5. At the end of year 10, emission reductions will have reached 1,878,000 t CO2 per year.

Facts
Partner ministriesMinistry of Energy and Mineral Development; Ministry of Water and Environment
(co-)applicantUnited Nations Development Programme (UNDP)
StatusDetailed Preparation Phase

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