The government of Rwanda and the World Bank Group have signed a $125 million Financing Agreement for the First Programmatic Energy Sector Development Policy operation.
Furthermore, Rwanda expects up to $325 million in three tranches from the World Bank.
The Independent reported that the deal follows a September decision by the government to increase financing to several projects in the energy projects.
The Minister of Finance and Economic Planning, Claver Gatete, and Yasser El-Gammal, the World Bank Country Manager, signed on behalf of their respective institutions.
This is the first credit in a programmatic series of three Development Policy Operations (DOPs) that lays out a consistent and incremental road map to enable fiscally sustainable expansion of electricity services in Rwanda.
The series supports the government’s Programme to balance two-pronged objectives of containing fiscal impact of the electricity sector and improving the operational efficiency, affordability, and accountability of electricity service. Read more…
“The Programme supported by the DPO series is based on a clear set of reforms that will help Rwanda lay the groundwork for successful energy sector development during the implementation of the National Strategy for Transformation for the period 2017-2024,” said Gatete.
Rwanda’s current electricity connections
Media quoted Germene Kamayirese, State Minister for Infrastructure responsible for Energy, Water and Sanitation, saying that about 41% of households in the country are connected to the power grid.
The government’s objective is to lift electricity generation capacity from the current generation capacity of 208MW to 563MW and connect 70% of Rwanda’s households to the grid.
“The World Bank is happy to be a strategic partner of the government in the energy sector. Through several operations, the World Bank has supported the government with expanding access and generation capacity, restructuring Rwanda’s electric utility and improving its efficiency.
“The proposed programmatic operation supports the government in taking many of reform measures, initiated in previous World Bank operations, forward in a structured, pragmatic, yet transformative manner,” said El-Gammal.
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