Rwanda and World Bank have signed a deal worth $125 million (Rwf107 billion) to kick off the ‘first Energy Sector Development Policy Operation financing agreement’.
The financing deal signed this morning at Finance Ministry offices in Kigali, “Will lower the cost of electricity service delivery, boost revenues and ensure power is affordable for low-income consumers,” said Germene Kamayirese, State Minister for Infrastructure responsible for Energy, Water and Sanitation.
According to Finance Ministry, the deal signed today is built around two pillars; containing the fiscal impact of electricity sector and improving the operational efficiency, affordability, and accountability of electricity service.
Finance Minister Claver Gatete said shortly after the signing that the financial agreement will enable fiscally sustainable expansion of electricity services in Rwanda.
“The Program is based on a clear set of reforms that will help Rwanda lay the groundwork for successful energy sector development,” said Gatete.
Under the strategic financial year 2014-2018, the World Bank allocated $802.40 million to support 10 projects in the country.
The projects are in sectors of Agriculture (35%), Energy (30%); governance (13%), urban planning (12%) and transport (6%).
Rwanda is also a beneficiary of the Bank’s $204 million funding to regional projects.
In September this year, a cabinet meeting chaired by President Paul Kagame approved extra financing for multiple energy projects– in a move to shift from the current generation capacity of 208MW to 563MW of electricity before end of next year and connect 70% of Rwanda’s households to electricity.