Last week, YUMN Limited, sealed a $350 million deal with the financiers of its planned peat power plant that will be located in Mamba Sector, Gisagara District, the New Times reported.
The company was incorporated four years ago by three firms, namely Hakan Madencilik A.S, a Turkish coal trading company, an international power firm, Quantum Power as well as project developer Themis.
The project’s backers include the Africa Finance Corporation, Finnfund, PTA Bank, Afrexim Bank, Development Bank of Rwanda, and Exim Bank of India.
The media quoted the Ministry of Infrastructure stating that the plant is estimated to increase national electricity generation capacity by 40%, while reducing expensive power imports.
Speaking at the deal signing ceremony in Kigali, minister of infrastructure, James Musoni, said the project comes as “another commendable step toward achieving Rwanda’s economic goals and raising the country’s economic and social status as par its development strategies.”
“This project will increase our installed capacity by 80MW, and might be the biggest power plant in the country by the time it comes on line in 2019,” Musoni said.
He added: “Together with other energy projects in the pipeline, it is expected that our installed capacity will significantly increase to over 500MW in the next five years.”
Meanwhile, Hakan Karasoy, the vice-chairman of Hakan Madencilik, lauded the government for the unwavering support toward the project.
Karasoy said: “We are excited to be bringing much-needed electric power to the people of this country.”
Quantum Power’s CEO Matty Venetic also commented: “We are delighted to have reached this milestone in the development of the project and to participate in the transformation of the Rwandan energy sector.”
YUMN will build the 80MW peat power plant on a build, operate, own and transfer basis over a period of 36 months.
The company has signed a 26-year power purchase agreement with the government, the ministry officials stated.
The second phase of project has an additional 40MW of capacity, media reported.
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