The Government of Rwanda and the People’s Republic of China on Friday February 7, signed a loan agreement worth $ 214 million (over Rwf200 billion) for construction of Nyabarongo II Hydropower Project.
The loan is to be paid in a period of 20 years including a grace period of 6.5 years and the interest rate is 2 percent.
The project is made of three main parts, namely a 43.5 MW Hydro power plant, a Substation and 110KV transmission line covering 19.2 km from the Power Plant (between Kamonyi and Gakenke districts) to Rulindo sub-station.
After the signing ceremony, the Minister for Finance and Economic Planning, Uzziel Ndagijimana noted that the financing is in line with the National Strategy Transformation (NST1) as far as electricity is concerned.
"This project will increase our power generation capacity and will improve our power stability on the grid, which is in line with our National Strategic Transformation to reach universal access to electricity by 2024,” he said.
As of December 2019, the connectivity rate of Rwandan households was at 52.8 per cent and the target is to reach 100 percent by 2024.
Of the connected people, 38.5 percent are connected to the national grid and 14.3 percent access electricity through off-grid systems (mainly solar), according to Rwanda Energy Group (REG).
Ndagijimana added; "The Government of Rwanda appreciates the continued support and cooperation with the People’s Republic of China in key sectors such as infrastructure, agriculture, education and health.”
The Chinese ambassador to Rwanda, RAO Hongwei, who signed on behalf of his government, also reiterated the current good relationship between both countries.
"I am happy to say that the bilateral relationship between our two great countries is at its best stage in history. This signing ceremony is another demonstration of our continued cooperation,” he said.
Adding that: "I know that there are even other development projects to be implemented in the near future.”
The good relationship between Rwanda and China was among others strengthened and emphasized by the visit of Chinese President Xi Jinping to Rwanda in July 2018, whereby the two countries by then signed up to 15 bilateral agreements in different areas of cooperation.