The financial agreement will fund the construction of 119 kilometers of transmission line from Rusumo Power Plant to Birembo substation in Kinyinya, Gasabo through the new
"Energy plays a key role in the development of our economy, almost all sectors are driven by energy," said Claver Gatete, Minister of Finance and Economic Planning.
The project beneficiaries will include households, industries, small and medium sized enterprises, and businesses, all of which will gain access to cheaper, more reliable and sustainable electricity.
"Increased electricity access create employment opportunities, increases off farm jobs, contributes to industrial development and reduces production costs through decreased electricity tariffs," Gatete said.
Rusumo Falls Hydroelectric Power Plant, a regional project shared by
"It will also provide the opportunity to replace high cost thermal plants from the power systems, thereby lowering the cost of power generation," Makonnen said.
Under its ambitious target, the government is looking at increasing electricity access to 70% in 2018, up from 17% currently.
Currently, the country's hydropower potential is estimated at 300 MW, while 333 hydro sites have been identified with a combined capacity for 96 MW. The country currently has about 44.8 MW of mini and small hydropower plants in operation.
Other regional projects underway are Rusizi (Rusizi III of 145 MW and Rusizi IV of 205 MW) that would be able to supply energy to DRC,
AfDB also finances the Electricity Access Rollout Program with total financing of USD
"Poor electrical reliability means that African manufacturing enterprises experience power outages on average 56 days per year. This therefore calls for countries to increase funding in clean energy generation to attract more investment and boost private sector growth," said
Experts are hopeful that such projects and others will help the country meet the ambitious target of increasing its current installed capacity from the current 110.8 MW to 563 MW by 2017.
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