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Ruzizi Hydropower

Central Africa
Grant Amount
EUR 2,800,000 + EUR 1,400,000
Total project cost
EUR 300m
PFG Lead Financier
PFG co-Financier

The project consists of the construction of a 147 MW Hydropower Plant on the Ruzizi river bordering DRC and Rwanda. It will be developed as a Public Private Partnership, through a concession provided to a private investor to develop, build, operate, and maintain the plant. Ruzizi III would be the third hydropower development on the river following Ruzizi I ("RI" - 29.8 MW) and Ruzizi II ("RII" - 43.8 MW). Reinforcement and extension of the transmission and distribution system in the DRC, Rwanda and Burundi will allow the evacuation of the additional 147 MW that will be produced by the new Ruzizi III hydropower plant.Further to the finalisation of the feasibility studies and the selection of a preferred investor to develop Ruzizi III, negotiations led to the signing of a Project Term Sheet in September 2014. However, before all project documents can be signed and both the Sponsor and the lenders commit their funding (equity and debt) to RIII, which would allow RIII to commence construction, a number of key development activities are still required. This includes the undertaking of additional geological studies, updating of the ESIA, preparing and launching the bid and negotiation of the EPC contract as well as the Operations and Maintenance Agreement, and the further development and negotiation of all project documents. In addition, lenders will have to conduct the due diligence of the project.

AITF funding has been used to provide technical assistance (TA) in the form of feasibility studies for the project, including:

i) Developing an institutional framework for the management of the Ruzizi cascade,

ii) Determining the profitability of the project and,

iii) Technical studies for the interconnection of South and North Kivu and their interface with the CEPGL interconnected network.