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The Government of Rwanda and the African Development Bank (AfDB) yesterday signed a financing agreement worth US$ 84.2 million (approximately Rwf 82.1 billion) to support Transmission System Reinforcement and Last Mile Connectivity Project.
The financing agreement was signed by Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning, on behalf of Government of Rwanda and Ms. Aissa Toure, AfDB Country Manager for Rwanda.
Under the last mile connectivity project, works will include construction of a total of 595 km of medium voltage and 1,620 km low voltage connections which will result into connection of 77,470 households in Gisagara, Huye, Nyamagabe, Nyanza, Nyaruguru and Ruhango districts. The project will also support distribution network reinforcements, substation and transition line construction, environmental and social management framework.
Speaking after the signing ceremony Minister Ndagijimana said: “The energy sector in Rwanda has made important progress where accross the country electricity access is at 63% as of May 2021. The financial agreement we signed today will significantly contribute to our ultimate goal of ensuring every Rwandan citizen has access to electricity by 2024.”
Ms. Toure revealed that ‘the project will provide first-time electricity connection to 77,470 households, upgrade, rehabilitate and extend of 1,720 km of low voltage network, and distribute transformers in secondary cities with high load’.
The project is part of the Rwanda Universal Electricity Access Program, a multi-donor program with an estimated envelope of more than US$ 670 million financing to support Rwanda’s universal coverage which aims to achieve 100% electrification by 2024 as per National Strategy for Transformation target.
The Transmission System Reinforcement and Last Mile Connectivity Project is co-financed by the World Bank, OPEC Fund for International Development (OFID), Saudi Fund for Development (SFD), Agence Française de Développement (AFD), the European Investment Bank (EIB) and Korean EXIM Bank.
AfDB’s contribution will represent close to 40% of the program costs with a development objective to improve network reliability/stability countrywide and increase electricity access for productive users and households.
AfDB has an existing partnership with Rwanda which focuses on infrastructure development, especially providing support in transport, energy and water and sanitation sectors among others.