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GoU and KfW | Multiconsult
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Table 9 - Overview of Key Risks
Description of Risk Progress
high
high
medium
medium
medium
medium
medium
Risk
Assessment
Mitigation Actions
Deemed commissioning of projects
due to poor coordination between
developers and network operators,
as well as missing funds, to ensure
the infrastructure for grid connec-
tion.
Construction delayed or genera-
tion not at full capacity due to con-
straints of the national grid (HV/
MV).
Corruption, misuse of funds and
bribes paid by developers or con-
tractors.
Compliance with Environmental
and Social standards of developers.
Lower generation than estimated
due to insucient hydrological data
and/or climate change.
Insucient Programme funds due
to foreign exchange rate develop-
ments.
Insucient understanding of
ground conditions results in sub-
stantial changes in the design and
layout of projects and/or adverse
environmental and social impacts
as a result of landslides or similar
during construction.
Close constant follow-up with GoU,
network operators and develop-
ers as project commissioning ap-
proaches.
Funding for the critical grid invest-
ments has been secured through
DFID to ensure power evacuation
for GET FiT Projects.
GET FiT is participating in the joint
sector planning group for GET FiT
interconnection and engaged in the
analysis of deemed energy scenari-
os for the sector.
Subsidies are performance-based
and disbursed for energy delivered.
Zero tolerance in developer’s con-
tracts, and termination of contracts,
as well as repayment of fees in case
of paid bribes.
Workshops on E&S standards were
provided to developers. Penalties
for non-compliance are incorpo-
rated in subsidy agreement (DFA).
Additional supervision visits are
carried out for critical projects.
Risks were included and diligently
assessed in hydrological estimates
and sensitivity testing at project
evaluation stage.
Continuous budget monitoring al-
lows for pro-active nancial man-
agement and early identication
of risks and Steering Committee
action if needed.
Developers required to provide
updates on geotechnical condi-
tions in the location of key project
structures and in high risk areas
during the implementation phase
based on further investigations
and assessments by geotechnical
engineering specialists. Develop-
ers requested to address key geo-
technical risks through changes in
project designs and construction
methodologies.
Addressing risk with MEMD has in-
creased the awareness and sped
up processes at the responsible
entities.
The risk of a deemed commission-
ing of at least one project remains
high.
Contractors were mobilised for
33kV reinforcements in Western
Uganda and construction of Opuyo
substation started in September
2018.
The risk of delays and deemed en-
ergy remains high due to an overall
lack of progress on these grid inter-
ventions.
General risk remains until the com-
missioning of all projects.
Some projects still perform unsat-
isfactorily. GET FiT has carried out
multiple additional supervision
visits, and imposed penalties on
some developers. Compliance is
continuously followed-up, includ-
ing post commissioning. The risk
of non-compliance and associated
reputational risks remain.
Generation data for all projects is
continuously followed up by GET
FiT. The realisation of hydrological
risks can only truly be assessed in
the fullness of time, following a sus-
tained period of generation (multi-
ple years).
Low risk level on original Pro-
gramme budget (premium pay-
ments) due to most funds already
disbursed there. Medium risk level
remaining on grid connection com-
ponent, where a funding shortfall is
likely.
Several projects implemented
changes in designs and construc-
tion methodologies in 2018 to im-
prove the robustness of project de-
signs and to reduce the likelihood
of landslides. Further changes may
be necessary for remaining projects
during 2019 to manage residual
risks.