The government has allocated more than Rwf149.8 billion in the 2026/2027 fiscal year for the construction of Nyabarongo II Hydropower Plant, which has reached 68 per cent completion, according to Rwanda Energy Group (REG). REG Chief Executive Officer, Armand Zingiro, said construction activities are progressing steadily, and the project remains on track for power generation by the end of 2027. ALSO READ: Rwanda’s China-financed Nyabarongo II dam 'halfway done' “We expect the main construction works to be completed by June 2027, after which the reservoir will be filled and testing activities will begin,” Zingiro told The New Times. “By December next year, we expect the plant to start generating electricity. The activities are ongoing, with most of the required equipment already on site while additional equipment is still arriving.” The 43.5-megawatt multipurpose hydropower project on the Nyabarongo River is designed not only to generate electricity but also to support irrigation on more than 20,000 hectares of farmland, supply water, and mitigate flooding in downstream areas. ALSO READ: Nyabarongo II hydroelectric dam construction works force road closure The project is funded through a agreement signed between the governments of Rwanda and China in February 2020, under which the Export Import Bank of China is providing a concessional loan worth $214 million to finance construction. The overall project cost is estimated at more than Rwf506 billion, including over Rwf341 billion allocated to Engineering, Procurement and Construction (EPC), more than Rwf152 billion for expropriation, and over Rwf11 billion for supervision activities. Chinese company Sinohydro is the contractor for the project. So far, Rwf204.7 billion has already been spent on the project, while Rwf149.8 billion is planned for the next fiscal year; 2026/2027. ALSO READ: Nyabarongo II dam construction prompts relocation of 3,000 people Nyabarongo II is being constructed across Kamonyi, Gakenke, and Rulindo districts. The multipurpose dam will stand 59 metres high and stretch 363 metres in length, creating a reservoir with a storage capacity of 803 million cubic metres. According to the Rwanda Agriculture and Animal Resources Board (RAB), the dam will support irrigation along the Nyabarongo, Akagera, and Akanyaru rivers, as well as areas around Lakes Cyohoha and Rweru in Bugesera. A major canal will transport water from the dam site in Shyorongi, located in Rulindo, to farmlands in Bugesera District, where much of the irrigation is expected to take place.