EUROPEAN UNION GIVES RWF17 BILLION FOR POWER SUPPLY MANAGEMENT

EUROPEAN UNION GIVES RWF17 BILLION FOR POWER SUPPLY MANAGEMENT

 

                    From the right to left: Hon. Germaine Kamayirese, MoS for Energy and Water; Ambassador Claver Gatete, Minister of Finance and Economic Planning and Ambassador Michael Ryan – EU delegation to Rwanda

Kigali, 19th March 2015 - The Government and European Union (EU) have signed a financing agreement worth Euros 23 million (about Rwf17.2 billion) to upgrade the country’s electricity network systems, to reduce losses of the already scarce power produced.


Speaking after the signing ceremony in Kigali, the Minister for Finance and Economic Planning, Ambassador Claver Gatete, said the project will be implemented over a period of three years, and will see energy infrastructure overhauled to increase on-grid electricity reliability.


“This support will help improve and establish essential infrastructure that contribute to the reduction of technical losses and allow the transmission of electricity to the national grid while improving the security, reliability and quality of supply to the City of Kigali,” Minister Gatete said.


The project is in line with the second Economic Development and Poverty Reduction Strategy (EDPRSII), which aims to ensure reliable energy supply as prerequisite for development, Gatete added.


The deal is also in line with global initiatives such as SE4All (Sustainable Energy for All) and supports government’s efforts by responding directly to the Energy sector’s goals.

The project will see the upgrading of the power substations of Mount Kigali, Birembo and Jabana as well as the construction of a new substation in Gahanga, Kicukiro District.


A 110kV power line, covering 23 kilometers, will also be laid to connect the stations and to complete what is called the Kigali Ring.


The implementation of the project will be undertaken by Rwanda Energy Group Limited (REG Limited), under the supervision of the Ministry of Infrastructure.

 

The Minister of State in charge of Energy and Water, Hon. Germaine Kamayirese with Mr. Jean Bosco Mugiraneza, the Chief Executive Officer of REG Limited during the signing ceremony

Hon. Germaine Kamayirese, the State Minister for Energy, said the support will see the energy burden in Kigali reduce to below 17% from over 20%.


“The funds will help us build the capacity of our power substations to be able to handle the kind of power we expect to generate and import. We will also try to establish new distribution lines while upgrading the existing power transformers to reduce on power leakages and losses,” Kamayirese said.


Rwanda’s current energy capacity stands at 160 megawatts and is expected to rise to 563 megawatts by 2017/2018.

Ambassador Michael Ryan, the head of the EU Delegation to Rwanda, said reducing power losses while focusing on generating more will help sustain the country’s energy sector and propel economic development.


“Energy is a new focal sector for the EU and we believe that this is a strong step toward creating a vibrant energy sector in the country,” Ryan said.

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