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Investment Grant for the Regional Rusumo Falls Hydropower Project

Region
Eastern Africa
Sector
Energy
Scope
IG
Grant Amount
EUR 12,750,000
Total project cost
EUR 369m
Status
Under disbursement
PFG Lead Financier
AFDB

The Project aims to finance the construction of the Rusumo Falls hydro-power plant on the Tanzanian and Rwandan border and the construction of the associated transmission lines connecting the power plant to the national grids of Burundi, Rwanda and Tanzania. More precisely, the scope of the project consists on construction of: (i) a 80 MW capacity hydropower plant (civil, hydro mechanical and electromechanical works, a switchyard) to be shared between the three countries; and (ii) 387 km of 220 kV transmission lines and associated substations (98.2 km in Tanzania, 161 km for Burundi and 119 km in Rwanda). 

The EU-AITF SE4ALL investment grant will fill a financing gap of EUR 12.75 million for Burundi. Its aim is to finance, jointly with the African Development Fund, the construction of 161 km of 220 kV transmission line in Burundi from the Rusumo plant to Gitega (via Muyinga), a new 220 kV substation at Muyinga and the upgrading of Gitega substation to 220 kV level.    

The project is in the investment phase. The loan agreements were signed on 7 February 2014 with the Government of Rwanda and on 11 January 2014 with the Government of Tanzania. The EU-AITF investment grant agreement was signed on 18 February 2014 with the recipient (Government of Burundi).   

Part of the works financed by the Investment Grant started in 2016. The project engineering and supervision consultant has prepared the design and bidding documents for the construction of the transmission lines and associated substations and the implementing agencies are reviewing the documents. The transmission lines and associated substations are expected to be completed by September 2019.

As of the reporting date several activities were completed, such as: (i) the procurement of project engineering and supervision consultant and site mobilization by the consultant, (ii) the consultant finalized the preparation of designs and bidding documents for all the three countries; and (iii) Rwanda issued the bidding documents to interested bidders and it is under evaluation.

All the transmission lines and associated substations are expected to be completed by September 2019.

Hydro Power Plant and the Dam components: Even though the dam and hydropower plant components are not financed by the EU-AITF investment grant, there are some milestones achieved, such as EPC contracts signed on 9 November 2016, the contractors were mobilized to site and ground break ceremony was held at the site on 30 March 2017. However, the completion date of the power plant has been pushed to 2020.

 
12/2017
 

AFDB Press Release of 27.11.2013