KIGALI Rwanda (Xinhua) --
Rwanda on Wednesday signed a 350-million-U.S.-dollar
contract with local and international financial institutions to fund
construction of its peat-to-power project as part of its drive to
increase energy access.
The deal, which is expected to add 80 megawatts (MW) to the national
grid, will help address the country’s constant power shortages,
according to the ministry of infrastructure.
The power plant will be the second in the country when it starts
production by the target date of 2019. The first peat plant is
expected to be completed this year with 15-MW capacity.
Yumn Ltd, a Turkey-based investment company, signed an agreement to
construct the peat fired energy plant in Akanyaru marshland,
Gisagara district, Eastern Province.
According to the power purchase agreement, the Turkish firm will
operate the plant for 26 years upon completion, and then transfer it
to the government of Rwanda.
consortium of financial companies that will inject funds towards the
construction include Preferential Trade Association-PTA bank, Africa
Finance Corporation, Finnfund-Finland’s development finance company,
Development Bank of Rwanda, African Export-Import Bank (Afreximbank)
and Export-Import Bank of India (EXIM Bank).
Speaking to reporters after the signing of the agreement, James
Musoni, Rwanda minister of infrastructure, said that the power plant
will boost energy access across the country and facilitate
enhancement of power generation for industrial development.
“The peat project comes as another commendable step towards
achieving our economic goals as replicated in our development
strategies. Our country has made a commitment to this investment
plan because we recognize that energy is the engine of our growth,”
Rwanda has set an ambitious target to increase installed electricity
generation capacity to 563 MW within the next two years, which
requires investments of 3 billion dollars in the energy sector.
Currently, the country’s energy production capacity is about 161 MW,
up from 50 MW seen in 2008.
In May this year, Rwanda unveiled a mega methane gas power plant—the
Kivu-Watt Gas Power project, which is expected to produce 100 MW of
electricity from Lake Kivu, the world’s only methane-rich water
The country is set to import 30 MW from Kenya on a five-year
arrangement expected to start later this year. Rwanda also plans to
import 400 MW of power from Ethiopia by 2018.
In February last year, the small central African nation unveiled
23.7 million dollars solar power plant, the first of its kind in the
region and the third in Africa after those in South Africa and
The utility power located in Rwamagana district, eastern province,
which was developed by the Netherlands-based company Gigawatt
Global, adds 8.5 MW to the national grid.