Header advertisement
Header advertisement
  • HOME
  • Rwanda
  • Landmark 80MW Peat to Power Project in Rwanda Reaches Financial Close
Title

Landmark 80MW Peat to Power Project in Rwanda Reaches Financial Close

FacebookTwitterWhatsAppEmailGoogle+
1

    By: Pamela Amia

  • Mar 14,2017
  • 288 Viewed

A US$350 million deal to finance an 80 megawatt (MW) peat to power project in Rwanda, which will improve access to electricity for the three quarters of the country’s population that is currently off the grid, has reached financial close.

The power plant, which is expected to increase installed capacity in Rwanda by 40%, will utilise the Country’s significant peat reserves to improve the national installed generation capacity.

Despite its status as one of Africa’s fastest-growing economies, only 25% of Rwanda’s population currently has access to reliable electricity.

The plant is being constructed in the Mamba Sector of Gisagara District, one of the most remote areas in Rwanda, and is expected to be completed within three years.

The Africa Finance Corporation is the Mandated Lead Arranger for the project debt, and has successfully arranged total senior debt facilities of US$245 million, contributing US$75 million in loans and providing an underwriting commitment of US$35 million.

Finnfund, a Finnish Development Finance Company, served as the lead arranger for total mezzanine debt facilities of US$35 million for the project. The other lenders are Eastern and Southern African Trade and Development Bank(TDB)African Export-Import Bank (Afreximbank), Export-Import Bank of India, and Rwanda Development Bank (BRD).

The project is sponsored by Hakan Madencilik A.S – an energy company from Turkey, and Quantum Power – a power and energy infrastructure investment platform. Themis Infra, an infrastructure development firm, is the Project Development Manager.

Andrew Alli, CEO of AFC, commented on the announcement: “The move from costly external imports of fuel to more sustainable indigenous sources of energy such as peat will reap great rewards for Rwanda, not just in terms of the significant savings in foreign exchange hitherto used in importing expensive diesel oil for power generation, but also the positive economic and social benefits of providing more cost effective power for businesses and industries, as well as more affordable power for the people”.

“AFC prioritises investing in projects that will have significant advantages for the local community, which this plant will. It will also make a huge contribution to powering Rwanda’s economic growth in the future, in line with the government’s objectives.”

Rwanda aims to provide 70% of its 12 million people with power from the grid or off-grid by 2018, and the country intends to become a lower middle-income country by 2020

# , #

Don't miss the stories AND LET'S go!!!

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...Loading...
 
Related Articles

Rwanda: Minister Biruta Warns Against Environmental Degradation

Rwanda is increasingly facing global climate change consequences including, flooding that leads to disasters such as landslides, droughts that adversely affect agricultural and natural resources

Pope Francis Apologises Over Church’s Role in Rwanda Genocide

Pope Francis has expressed his profound sadness, that of the Holy See and of the Church, for the genocide against the Tutsi and the Catholic

Rwanda: IGP Gasana Warns on Corruption

The Inspector General of Police (IGP), Emmanuel K. Gasana has called upon officers to exercise high moral grounds and professionalism in the execution of their

Militants Kill 2 in Rwanda Attack, Escape to Burundi

Rwanda Military Intelligence has commenced investigations into circumstances under which heavily-armed militants attacked a town along the Burundi border, killing two people. Army spokesperson Lt

Kagame: Africa’s Future Unpredictable but Manageable

The unpredictable world is compelling Africa to be more innovative and protectionist, Rwanda President, Paul Kagame has revealed. The surprising rise of Donald Trump as

Kagame: Too Early to Judge President Trump

Rwanda President Paul Kagame has expressed hope about the presidency of Donald Trump, saying it’s too early to pass the verdict. Trump’s foreign policy remains

Unity Key for EAC’s Transformation, says Kagame

President Kagame has warned that the goals of the region and the continent would not be achieved if African leaders get lost in counterproductive divisions

Rwanda: No More Use of Trees in Constructing Shelters in Refugee Camps

The alarming population growth of refugees in different refugee camps, changes in climate change, rapid depletion of environment resources, along with other factors  seem to

Rwanda: More than 200,000Rwf Spent to Pursue a Single Judicial Case

Expenses incurred due to the unavailability of enforcements, the fact that defendants have not been cooperative, corruption in some justice sectors and bureaucracy, have been

Kagame Roots for Unity, Seriousness Amid Tough Economic Times

President Paul Kagame has piled pressure on Rwandan leaders to do more to realise the country’s goals amid tough economic challenges, Chimp Corps report. “We


Header advertisement
Header advertisement
Header advertisement

Header advertisement
Error, no group ID set! Check your syntax!
Latest News

Header advertisement

Fury as Pioneer Bus Crashes Woman

Police was called in urgently to calm a rowdy crowd after one of the street vend... (Read More)

FBL: Maroons’ Hopes of Direct Promotion Held Huge Blow

Fufa Big League Kiira United 2-1 Maroons FC Maroons will have to wait for anothe... (Read More)

Lord Mayor Lukwago Skeptical on Museveni Camera Project

Kampala Lord Mayor Erias Lukwago has said he is doubtful the Closed Circuit Tel... (Read More)

Ssekisambu Stars as Vipers Annihilate Kiboga Young

2016/17 Uganda Cup Vipers 7-0 Kiboga Young Uganda Cup holders Vipers Sports Club... (Read More)

Opposition MPs Want Report on Kaweesi Murder in 3 Weeks

Opposition Members of Parliament (MP) led by the Shadow Defense Minister, Gilber... (Read More)

DP Rushes to Constitutional Court Over Opposition Leadership in Parliament

Opposition Democratic Party (DP) National Vice President and EALA MP, Fred Mukas... (Read More)

UPDF Recover 2 Guns, 6 Bombs in Tororo Hospital

By David Oduut The Uganda Peoples’ Defense Forces UPDF has Thursday afternoon ... (Read More)

New Guidelines to Reduce Government Importation

Ministry of Finance has Thursday announced a new set of guidelines aimed at prom... . (Read More)

Debutant Waiswa Scores Late as Uganda Hold Kenya

FIFA international friendly Kenyatta stadium, Machakos Kenya 1-1 Uganda Moses Wa... (Read More)

Kabale: Murder Suspect Arrested at Prisons Recruitment Centre

Benson Andinda Basheija, a 26 year old murder suspect was on Thursday arrested a... (Read More)

Politics

Rugunda Hails ‘Inspirational” Obote Minister Dr Nkwansibwe

The Prime Minister Dr David Livingstone Ruhakana Rugunda paid a moving tribute ... (Read More)

 

Error, no group ID set! Check your syntax!
Special Reports

SPECIAL REPORT: What Makes Uganda Standard Gauge Railway Costly?

Around 2010, East African leaders realised that infrastructural bottlenecks were... . (Read More)
Travel

French Embassy to Promote Uganda Through French – Cranes Game

The French embassy has revealed plans to fly the French military soccer team to ... (Read More)
Like Us on Facebook
Acquistare Cialis here.
Header advertisement