Ruzizi III Hydropower Plant

The project involved the construction of a 147 MW Ruzizi III hydro-electric dam and distribution station between Rwanda and the Democratic Republic of Congo, on the Ruzizi river.

DESCRIPTION

A 147 MW hydropower plant will be constructred on the Ruzizi River. It will provide electricity supply to Rwanda, Burundi and the DRC. It entails the construction of a run-of-river dam between DRC and Rwanda, downstream from the Ruzizi II hydropower dam, a 147 MW power plant and a distribution station. Power will be transmitted to the three countries from the Kamanyola substation by 220 kV transmission lines.

The Ruzizi III project will significantly transform the electricity sectors in the countries concerned. Its implementation will contribute to: 

(i) optimal exploitation of the Ruzizi River's energy potential to improve security of supplies and access to electricity; and

(ii) the strengthening of regional economic integration by creating a market for electricity.

OBJECTIVES AND RATIONALE

PROJECT RISKS

PROJECT ECONOMICS

• NET PRESENT VALUE: 0.00

• COST BENEFIT RATIO: 0.00

• FINANCIAL INTERNAL RATE OF RETURN (FIRR): 7.84

• ECONOMIC INTERNAL RATE OF RETURN (EIRR): 13.35

• COMMENTS ON ECONOMICS: Funding secured from European Development Fund.

PROJECT FINANCING

African Development Bank

European Development Fund

European Investment Bank

KfW Development Bank

World Bank

African Development Bank

European Development Fund

European Investment Bank

KfW Development Bank

World Bank

OPERATION AND MAINTENANCE

OVERALL COST: 0.00

ANNUAL COST: 0.00

COMMENTS ON FINANCE:

In January 2014, several dialogues with donors were agreed to, in order to mobilize concessional funds and donations to be granted to the United States for relinquish them the SPV (support to an acceptable rate by the NIS of 11-13 Cents USD / KWH),

International financial institutionssuch as the World Bank, the EU, theEuropean Investment Bank (EIB), theAfrican Development Bank (AfDB),Kreditanstalt Für Wiederaufbau (KFW),and French Development Agency (AFD)will fund 60% of the project cost.AfDB authorised a $138m loan tosupport the development of the RuziziIII hydropower plant in January 2016.The EU-Africa Infrastructure Trust Fund (EU-AITF) approved a total technical assistance grant of €4.2m($4.6m) for the project. Its executive committee also authorised an investment grant to co-finance the development costs of the project. The grant will be converted into the governments’ equity at financial closure. An additional grant was also approved to cover the equity participation of Rwanda and Burundiin 2017

STUDIES

PROJECT STAKEHOLDERS

CAPEX Funder

African Development Bank

Regional Coordinator

East African Community

Sectoral Organisation

Eastern Africa Power Pool

Lead National Agency

Électricité des Grands Lacs

CAPEX Funder

European Development Fund

CAPEX Funder

European Investment Bank

CAPEX Funder

KfW Development Bank

Lead National Agency

Rwanda Energy Group

CAPEX Funder

World Bank

CONTACTS

Mr. David Niyonsenga -DavidN@nepad.org

CONTRIBUTION TO 2030 AGENDA