Parliament yesterday unanimously endorsed the ratification of major bills sanctioning the government’s acquisition of loans and grants that will help boost the energy sector in the country.
The Minister of Infrastructure, Vincent Karega, tabled four bills at a go, among them, the ratification of the US$60m loan that government acquired from Exim Bank of India for the construction of Nyabarongo Hydro project.
“Upon completion, the plant will generate 27.5 Mega Watts of electricity which will be a major boost to the national power grid. The project is expected to be completed in two and a half years,” Karega told the Parliament.
The credit line agreement for the Nyabarongo Hydro Power project was signed in New Delhi, India in January 2010, by Rwanda and the Export-Import Bank of India (Exim Bank of India).
“We acquired the first batch of the money totalling to $20m which was disbursed on the ground work and this is the second batch. The total cost of the project is $80m,” Karega told the lawmakers.
He also tabled a bill for the ratification of a credit agreement signed between the Rwanda and the International Development Association (IDA) for the Electricity Access Scale-up and Sector-wide Approach Development Project worth $70m.
The amount of the main credit facility accorded by the bank will be reimbursed at an interest rate of 0.75percent over a period of thirty years, after a grace period of ten years.
According to the Minister, this project aims at improving access to reliable and cost-effective electricity services for households and priority public institutions.
Parliament also approved the ratification of a grant agreement signed between Rwanda and the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA) acting as an implementing agency of the Africa Renewable Energy Access Trust Fund (AFREATF) for the co-financing of the Sustainable Energy Development Project.
“The Bank and the Association have agreed to give us a grant of $3.8m for the co-financing of the project.
The project’s total cost is estimated at $8.3m,” Karega said.
All the bills were passed.