In early 2004, the West Nile Rural Electrification Company Ltd. plans to start up their new efficient diesel generators in the West Nile towns of Arua and Nebbi, to provide reliable power to the population during the day and most of the night. This is the first carbon finance project that has been approved in Uganda, with an Emission Reductions Purchase Agreement signed in March 2003. The company must expand their customer base quickly, because not only their income from power sales to the local population and industry, but also the Prototype Carbon Fund (PCF) payments for emission reductions will depend on the speed and performance with which they manage the conversion. PCF payments also promote the construction and operation of the two new small runoff- river hydropower plants of 5.1 and 1.5 megawatts. Hydropower will significantly increase the emission savings and therefore the income to the company from selling the emission reductions to the PCF.