Tripartite Dam Gets U.S.$138 Million From African Bank
Posted on : Monday, 4th April 2016
Kigali — The African Development Bank (AfDB) Group recently in Abidjan, formally approved $138 million of loans and grants to finance the Ruzizi III Hydropower Plant Project.
The AfDB said in a statement: 'The project will displace significant amount of fossil based power in the ECGLC region and increase the percentage of green energy. Additional benefits of the project include the creation of permanent and temporary jobs and a reduction in greenhouse gas emissions.'
Ruzizi III hydropower plant is part of the Programme for Infrastructure Development Africa (PIDA) and involves Burundi, the Democratic Republic of Congo (DRC) and Rwanda.
Implementation of the project will be carried out at a total cost of $625.19 million (of which the $138.88 million will be borne by the AfDB's public sector window and $50.22 million by the private sector window).
The director of the AfDB's energy, environment and climate change department Alex Rugamba said: "Sustainable regional infrastructure is a necessity element for strong regional integration and key to successfully tackling today's most challenging climate change-related problems. The Ruzizi III hydropower plant project is central to AfDB's strategic vision for the development of the African energy sector through the promotion of universal access to low-carbon and inclusive modern energy." The financing will enable the construction of a run-of-river dam straddling the Ruzizi River between the DRC and Rwanda, as well as a 147 MW power plant and distribution station. These new facilities will provide an independent source of green energy, helping the DRC, Rwanda and Burundi to meet their growing energy needs. All three countries have been experiencing difficulties in meeting the demand for electricity, due to over a decade without major energy infrastructure investments while their populations and economic activity have continued to grow.
By ensuring reliable and affordable electric power, the Ruzizi III Hydropower Plant Project will increase the region's access to electricity by 300% thereby contributing to the sustainable socio-economic transformation of the region. As a regional project, the electricity generated will also feed into the East African Power Pool (EAPP).
The Rwanda Development Board said current total installed domestic generating capacity is around 126 MW, with a 22.5% connectivity rate (21% on-grid and 1.5% off-grid). The board said Rwanda aims to boost generating capacity to 563 MW by 2017, supported by independent power producers and public-private partnerships.
Ruzizi III Hydropower Plant Project is the first regional power project in East Africa to be established as a public-private partnership (PPP). In this framework, the project's implementation has been entrusted to the Great Lakes Energy Organization (EGL), a sub-regional body which coordinates energy development in East Africa. Its implementation has been possible following a grant awarded to EGL in 2011 by NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) to finance transaction advisory services for the Ruzizi III Hydropower Plant Project.
