The Development Bank of Rwanda (BRD) has entered into agreement with Rwandan Mountain Tea (RMT) to facilitate funding of Phase II construction works for a 4MW hydro power plant in Nyabihu in Western Province. The loan awarded to RMT was worth US$12m.
The loan given will be channeled towards the construction of the Giciye II hydro power project which is being implemented at a cost of US$17m. Once operational, the project will add 8MW of electricity to the national grid when combined with Giciye I. the grant is going to be paid over a period of seven years, affordable interest rates and a one-year grace period.
The government of Rwanda is aiming at achieving economic stability through improving the level of connectivity in the country and also reducing the cost of productivity. All this is part of the second Economic Development and Poverty Reduction Strategy (EDPRS) objectives. The project will be undertaken after successful completion of Giciye Phase I now connected to the national grid.
The target is to increase access to electricity from the current 22 per cent to more than 60 per cent of the population and have the country’s generation capacity increase from the current 155MW to 563MW by 2017.
The government of Rwanda is also aiming at constructing a US$260m peat-fueled power plant in Gisagara district, a project that will see 80MW of power added into its national grid.