AfDB approves $138 million for Rusizi III hydropower project

The African Development Bank (AfDB) Group has approved $138 million in loans and grants to finance the Rusizi III Hydropower Plant Project. Rusizi III hydropower plant is part of the Programme for Infrastructure Development in Africa (PIDA) and involves the three neighbouring countries. “Implementation of the project in Rusizi District will be carried out at a total cost of $625.19 million (of which the $138.88 million will be given by the AfDB’s public sector window and US$ 50.22 million by the private sector window),” reads part of the bank’s statement. The financing will enable the construction of a run-of-river dam straddling the Rusizi River between the DR Congo 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 DR Congo, 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,” the statement said. It is further noted that by ensuring reliable and affordable electric power, the Rusizi III Hydropower Plant Project will increase the region’s access to electricity by 300 per cent 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 Rusizi III Hydropower Plant Project is the first regional power project in East Africa to be established as a public-private partnership (PPP). Its implementation was entrusted to the Great Lakes Energy Organisation (EGL), a sub-regional body which coordinates energy development in East Africa and, implementation is now possible following a grant awarded to EGL in 2011 by NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) to finance transaction advisory services for the project. “The US$1.4 million NEPAD-IPPF grant helped provide key expertise for the project’s development, as well as sound knowledge of the context and actors of the region that led to the project’s eventual financial close.” The NEPAD-IPPF grant is a multi-donor Special Fund hosted by the AfDB which provides grants to African countries through Regional Economic Communities (RECs), Power Pools (PPs) and other specialised regional institutions to facilitate the preparation of regional or cross-border infrastructure projects in energy, trans-boundary water, transport and ICT to make them bankable and, therefore, investment-ready. The grants are used to carry out pre-feasibility, feasibility, technical and engineering designs as well as transaction advisory services. NEPAD-IPPF is supported by Canada, Germany, UK, Spain Denmark and Norway. editorial@newtimes.co.rw

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AfDB approves $138 million for Rusizi III hydropower project