GoR SIGNS 80MW PEAT TO POWER DEAL WITH HAKAN

Kigali, January 10, 2016 – The Government of Rwanda (GoR) today signed a Power Purchase Agreement and a Concession Agreement with HAKAN MADENCILIK VE ELEKTRIK URETIM SAN. TIC. A.S. to design, build, finance, own, operate and transfer a 80MW Peat power plant to produce electricity from peat extracted from the South Akanyaru Peat Prospect in Gisagara district.

This was done in the efforts to increase the levels of energy production in Rwanda where the Government encourages the private sector to participate in the development of power plant projects that will generate energy by using different sources.

The overall objective of the signed agreements is to document the responsibilities of both the investor and the GoR with respect to the project and to grant permission to the investor to operate.

Energy is a key component of economic development and as such Hakan Peat to Power plant investment will further boost Rwanda’s competitiveness. The total investment has a value of USD400 million.

Though connecting all households in the country is Governments’ goal, 48% of the households will be supplied by National grid by 2017/2018 and the remaining 22% would be electrified with off-grid solutions such as mini-grids (small hydro, solar and hybrid systems) and standalone PV systems reaching a total of 70% of households electrified by June 2018. 

Currently, Rwanda has installed electricity capacity of 185 MW and the target is to achieve 563 MW power generation by 2018, the year by which the access to electricity will reach 70%. Therefore, the signed deal will contribute in achieving our energy target.”

The Construction Period is 47 months from the Effective Date and the construction of the power plant will be complete and the power is expected to come on line at the end of March 2020. 

The Minister’s quote:  “The provision of electricity to all Rwandans is a priority for the GoR. Such private initiatives and investments in the construction, development and maintenance of sustainable electricity generating plants provide great economic value.”

The Government intends to increase power generation and access through both Public Private Partnership (PPP) and Build Transfer and Operate (BOT) as models.

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