Kigali, 20 September 2018-The Government of Rwanda and Japan International cooperation Agency (JICA) signed yesterday, a financing agreement worth US$ 23.653 million (Approximately Frw 24 billion) to support the third phase of rehabilitation of substations and electricity distribution network.

The grant agreement will also reinforce the 110KV transmission line between the existing transmission lines and the new Gasogi Substation.

This financing agreement was signed between the Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana on behalf of Government of Rwanda and H.E. Mr. Takayuki MIYASHITA, Ambassador of Japan to Rwanda, and Mr. Hiroyuki TAKADA, Chief Representative on behalf of the Japan International Cooperation Agency (JICA).

Speaking after the signing ceremony, Minister Ndagijimana noted that with the steady economic growth of approximately 7 percent in recent years, Government is making necessary investments to cater for the increasing power demand which is growing more than 10 percent each year. 

“This 3^rd phase will strengthen the capacity to avoid the risk of a large-scale power outage by enabling a stable supply of power. It will also reduce power outage and improve the electrification rate in Kigali, with expected positive impact not only on the economy but also on education, health and well-being of the population”.  He mentioned that “the amount of power consumed in Kigali accounts for approximately 64% of the country’s total power consumption, therefore the construction of this new substation at Gasogi in Gasabo District will greatly contribute to a more stable supply of power”.

Mr. Hiroyuki Tayada, the Chief Representative of JICA highlighted the commitment of Japan to support Rwanda “We are pleased to be part of solutions to support Rwanda having stable power which is a prerequisite for foreign direct investment as well as meeting the growing demand of stable and efficient power supply”. He noted.

JICA has been continuously supporting improvement of electricity network in Rwanda through the Project for Improvement of Substations and Distribution Network already financed through Phase I and Phase II.