BizNis Africa
Latest News
South Sudan hosts first Energy Event for Top Executives in Africa
South Sudan’s first ever energy and infrastructure conference, endorsed...
Adesina to deliver Norman Borlaug Lecture on World Food Day
Akinwumi Adesina, African Development Bank (AfDB) President, will deliver...
AfricaOnline leads digital economy evolution in Ghana
While Africa still has very real infrastructure development challenges,...
Newsclip unveils artificial intelligent data engine processing tool
Newsclip recently demonstrated the power of its artificially intelligent...
Finance industry to close South Africa’s ZAR30 billion water infrastructure gap
South Africa’s water, infrastructure and financial sector stakeholders met in...
GIBS named Africa’s business school by UK Financial Times Executive MBA Ranking 2017
The University of Pretoria’s Gordon Institute of Business Science...
SITA technology upgrades Kotoka International Airport new Terminal
SITA is providing its world-class passenger and baggage processing...
Dangote Rice launches youth graduates rice farming project in Kogi
Unemployment: Dangote employs youth graduate for rice farming in...
Vice and Econet Media seal joint venture in Sub-Saharan Africa
VICE Media and Econet Media today announced an expansive...
Southern African Airlines faces skills shortage crisis
Airlines in the region will face a potentially crippling...

$350 million power plant will increase Rwanda’s installed capacity by 40%

A $350 million deal to finance an 80 megawatt (MW) peat to power project in Rwanda, which will improve access to electricity for the three quarters of the country’s population that is currently off the grid, has reached financial close.

The power plant, which is expected to increase installed capacity in Rwanda by 40%, will utilise the Country’s significant peat reserves to improve the national installed generation capacity. Despite its status as one of Africa’s fastest-growing economies, only 25% of Rwanda’s population currently has access to reliable electricity.

The plant is being constructed in the Mamba Sector of Gisagara District, one of the most remote areas in Rwanda, and is expected to be completed within three years.

The Africa Finance Corporation is the Mandated Lead Arranger for the project debt, and has successfully arranged total senior debt facilities of US$245 million, contributing US$75 million in loans and providing an underwriting commitment of US$35 million.

Finnfund, a Finnish Development Finance Company, served as the lead arranger for total mezzanine debt facilities of US$35 million for the project. The other lenders are Eastern and Southern African Trade and Development Bank(TDB)African Export-Import Bank (Afreximbank), Export-Import Bank of India, and Rwanda Development Bank (BRD).

The project is sponsored by Hakan Madencilik A.S, an energy company from Turkey, and Quantum Power, a power and energy infrastructure investment platform. Themis Infra, an infrastructure development firm, is the Project Development Manager.

“The move from costly external imports of fuel to more sustainable indigenous sources of energy such as peat will reap great rewards for Rwanda, not just in terms of the significant savings in foreign exchange hitherto used in importing expensive diesel oil for power generation, but also the positive economic and social benefits of providing more cost effective power for businesses and industries, as well as more affordable power for the people,” says Andrew Alli, AFC Chief Executive Officer.

“AFC prioritises investing in projects that will have significant advantages for the local community, which this plant will. It will also make a huge contribution to powering Rwanda’s economic growth in the future, in line with the government’s objectives.”

Rwanda aims to provide 70% of its 12 million people with power from the grid or off-grid by 2018, and the country intends to become a lower middle-income country by 2020.

Leave a Reply

Ver peliculas online
%d bloggers like this: