African Development Bank(AfDB) will disburse two loans amounting to $180 Million to Rwanda to improve access to power and cut greenhouse gas emissions.
The project involves putting in place thousands of kilometres of medium and low voltage lines to enable last-mile access.
These lines will connect 77,470 households to the electricity network for the first time, 65 administrative centres, 75 schools and eight health centres.
The AfDB said the new funding follows approval for $84.2 million made in May 2021.
This project also involves installing or upgrading over 1,200 distribution transformers and related infrastructure.
The project will also enable the evacuation of 125MW of clean energy from hydropower plants and create permanent jobs, especially for women who have been given 30% slots.
According to Aissa Tour-Sarr, the African Development Bank’s Country Manager in Rwanda, AfDB intervention is aimed at supporting Rwanda’s pursuit of 100% access to electricity by 2024
Aissa added that the project would enhance the quality of life by facilitating improved education and health provision and promoting private sector growth.
The main cities targeted for electricity connections include Ruhango, Nyamagabe, Gisagara, Huye, Nyanza and Nyaruguru.
The project will boost the power networks in such zones as Nyarugege city, Nyamata and Kigali Hub, where rising commercial activity has led to a spike in electricity demand.
AfDB Vice President for Power, Energy, Climate & Green Growth, Dr Kevin Kariuki, said the project would not only contribute to addressing Rwanda’s energy poverty.
The African Development Bank Group’s contribution, including last year’s approval funding resources of $84.2 million from the African Development Fund, the Bank Group’s concessional window, represents around 40% of the program’s costs.
The project aligns with two of the Bank’s High-5s – “Light Up and Power Africa” and “Improve the Quality of Life for the People of Africa.”
As of March 2022, the African Development Bank has financed over $1.4 billion worth of projects in Rwanda, of which $498 million has been directed towards energy project projects.
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