Musanze 21 June, 2017:The Minister of Infrastructure James Musoni, U.S. Ambassador to Rwanda Erica Barks-Ruggles and German Ambassador to Rwanda Dr. Peter Woeste have launched the construction of Rwaza I Micro-hydropower plant in Musanze district, Northern Province. Other different project partners including local leaders, security organs and local community attended this event.

The Micro-hydropower plant is being developed with a grant partly provided by the United States Government’s Power Africa Initiative. The completion of this project will contribute in boosting reliable, affordable electricity into the Rwandan national grid. The project will produce approximately 2.6 MW to benefit more than 10,000 households including surrounding communities.

The Minister of Infrastructure and guest of honor, Hon. James Musoni commended the partnership with both USA and German Governments which facilitated the start of this Micro-hydropower plant as part of Rwanda’s initiative to reduce greenhouse gasses and provide clean, renewable energy to the people of Rwanda. When addressing the local population, Minister Musoni stressed that the project will provide approximately 2 percent of the total electricity produced in the country, and which will therefore stabilize the local grid—improving power supply to local businesses and industries.

“The Power Plant we are launching today might be small in size, but we have no doubt that even the 2.6 MW to be produced at Rwaza-Muko Micro-Hydropower Plant will greatly contribute to our bold vision. This project could not have come at a more opportune time, as we project our energy demand to soar from the current 208 MW installed capacity to a projected 563 MW by 2018” said Minister Musoni. He reassured international investors of the commitment of the Government of Rwanda to continue providing basic infrastructures and facilities that ensure a smooth investment environment.

The USA Ambassador expressed that American companies are at the forefront of helping Rwanda meet its energy needs and are driving investment in energy sector, including methane gas, off-grid solar, and the mini-hydro sector. “I am excited about the progress we have made over the past couple of years and the potential for further U.S. investment and engagement through the Power Africa initiative to help Rwanda meet its energy needs.”, said Ambassador Barks-Ruggles.

German Ambassador, Dr. Peter Woeste, on his side, congratulated the groundbreaking of the project. He noted that this project shows how the private sector and government can work together in Rwanda to get a deal across the finish line.

“This project can be a perfect role model to link these needs and aspirations. As discussed at the G20 recently, we see the necessity to discuss innovative financing solutions. This project would fit perfectly into the new development approach” said the German Ambassador Peter Woeste.

The construction of this new Micro-hydropower plant directly supports the Rwandan Government’s goal of providing 70 percent of the population with access to electricity by 2018 and advance the objectives of Power Africa (U.S. Government-led electricity access initiative) and KfW (Germany’s government-owned development bank) in addressing one of the most pressing challenges to sustainable economic growth and development in sub-Saharan Africa – access to reliable, affordable and sustainable electricity.

Rwaza I is a 2.6 megawatt run-of-the-river Micro-hydropower plant located in the Rwaza Sector on the Mukungwa River, in Musanze District. The project is being implemented by DC HydroPower at a cost of $ 12 million funded by U.S. Trade and Development Agency (USTDA) and German Government through KFW.

Construction of the plant began in January 2017 and is expected to last for 18 months, after which the plant will be operational. Rwaza 1, along with the nearby 4 megawatt Nyundo hydropower plant, received assistance from USTDA. The Nyundo project is being developed by Amahoro Energy, a Rwandan company with US investors formed to electrify the Shyira Hospital, which serves more than 300,000 people, and is expected to commence construction on October 2017 and reach commercial operations by December 2018.