The loan agreement will reportedly be directed towards boosting energy supply not only in Rwanda but the entire Great Lakes region and increase Rwanda’s participation in the Ruzizi III project.
[quote]According to local media, Claver Gatete, minister of finance and economic planning, said the funding will be fully allocated to the regional hydropower station, Ruzizi III project.
Ruzizi III project
The Ruzizi III plant is a regional project shared by Rwanda, Burundi, and the Democratic Republic of Congo (DRC) and is expected to generate more than 147MW of electricity.
The three countries are to share equally the power generated by the hydropower station.
Gatete said: “This bilateral agreement shall increase Rwanda’s clean energy generation capacity by about 50MW. We very much appreciate the support of the German government.”
“Additional benefits of the project, besides opening the area to modern infrastructure, will include the creation of permanent and temporary jobs and a reduction in greenhouse gas emissions,” he added.
Project backed by various donors
The media reported that the pact states that the backing will be implemented by the German KfW Development Bank in cooperation with the government, the implementing Special Project Company of Ruzizi III, and other donors including the African Development Bank, World Bank, as well as the European Union.
Commenting on the development, German ambassador to Rwanda Peter Fahrenholtz said: “Germany is committed to affordable, reliable and sustainable energy supply for Rwandan citizens, but also for Rwanda’s neighbours Burundi and DR Congo.
“We know that energy is a high priority for Rwanda’s development and we are very happy to make a contribution to improving the energy supply for Rwanda so that, in the end, its citizens can have a better life.”