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AfDB announces 24.17 mln USD funding for regional power project

Xinhua, March 17, 2016 Adjust font size:

The African Development Bank (AfDB) Wednesday announced 24.17 million U.S. dollars funding toward construction of Ruzizi III regional hydropower plant project expected to generate more than 147MW of electricity.

The power project is shared by Rwanda, Burundi, and the Democratic Republic of Congo.

The power will be equally shared amongst the three countries with Rwanda expected to get 50MW.

The concessional loan financing deal was signed in Kigali by Rwanda's minister of Finance, Claver Gatete and Negatu Makonnen, the AfDB's country representative to Rwanda.

The loan attracts 0.75 percent to be repaid in 38 years with a grace period of 5 years.

Gatete said the project would contribute to having reliable and affordable power supply in the region.

The entire project is estimated to cost about 625 million U.S. dollars.

The bank's overall contribution to the multinational Ruzizi III hydro power project is 190 million U.S. dollars covering contributions for Burundi, DR Congo and Rwanda.

Negatu Makonnen, the AfDB's country representative, said the project package include an 8.3 Kilometer and 220KV transmission line connecting Kyamanyola power dispatch center and associated power evacuating lines.

Sustainable regional infrastructure, he said, is a necessary element for strong regional integration and key to successfully tackling today's most challenging climate change-related problems and security.

"The multinational 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. This concept has been demonstrated several times in this country," Makonen said.

With this project, AfDB's current active portfolio of Energy projects in Rwanda amounts to more than 180 million U.S. dollars, according to officials.

Germaine Kamayirese, Rwanda's minister of State in Charge of Energy, said construction of the project is expected to commence in 2018 and will take a period of 4 years.

Additional financing is expected from other development partners and the three governments. Endit