A US$ 400m peat-fired power plant is set to be constructed in Southern Rwanda by a Turkish company, Hakan Mining and Generation Industry and Trade Inc.
The 80MW power plant is under a power purchase agreement (PPA) signed by the Rwandan government.
The agreement gives them the go ahead to design, finance, build, own and operate the plant using peat extracted from south Akanyaru in Gisagara District.
Hakan’s chairman, Mr. Ahmet Karasoy confirmed the reports and said that they were majorly attracted by Rwanda’s growth prospects offered by country’s vibrant economy and investment opportunities which are attributed to good public administration.
“We were attracted to this market majorly because of the investment opportunities and the economic growth that has been experienced in the country so far,” said Mr. Karasoy.
The mega project is anticipated to open up more opportunities to the citizens of Rwanda and the Turkish company is expected to construct within 47 months and commission the power plant to enable it inject 80 MW to the national grid by end of March 2020 or face penalties for failing to deliver.
They are also planning to support some sectors like agriculture through irrigation and other corporate social responsibility projects in Rwanda.
Hakan is an independent power producer that is engaged in the coal import business since 1995.
Rwanda is a fast growing economy with an average growth rate of 7% during the last five years. The country has macroeconomic and political stability with a conducive business environment. They have currently installed generating capacity of 185 MW and construction of Hakan’s peat fired plant is set to commence within 12 to 15 months to add on to the electricity supply deficit experienced in the country.