Rwanda signs two concession agreements to boost energy production

Kigali, on 19th May 2016, the Government of Rwanda through the Ministry of Infrastructure signed two concession agreements with two developers: one with Amahoro Energy (4 MW) and the other with DC Hydropower (2.6 MW).   
The signing ceremony was officiated by Honorable Germaine KAMAYIRESE, Minister of State in charge of Energy and Water.
In January 2015, the Government of Rwanda approved the signing of Power Purchase Agreements (PPAs) and Concession Agreements for the development of Green Fields micro hydro projects, including one site Nyundo of 4 MW and Rwaza-Muko site of (2.6 MW).
This was indeed in recognition of the active role that the private sector can play in the design, financing, maintenance and operations of hydropower plants.
After the agreement signing Hon. KAMAYIRESE commended the partnership. She highlighted “Not only the energy produced by the two plants of Nyundo and Rwaza will be injected in the grid, but also the rural households nearby will benefit and enjoy socio-economic activities powered by electricity”.
Over the past years, more investors, both national and international, are tapping in the energy production which has been given priority in the national infrastructure development agenda and through joint efforts with the private sector.
The Government will continue harnessing and making the best use of the country’s hydro-electricity resources in an equitable and sustainable manner.
Increasingly, large investment projects require partnership between government and private sectors and this is in line with the Government’s policy and development goals such as the second Economic Development and Poverty Reduction Strategy (EDPRS II) as well as Vision 2020. The Government will continue to encourage this win-win partnership.
This signing of concession agreements comes at the time when in August 2015, the Government of Rwanda has also signed Power Purchase Agreements (PPAs) and Concession Agreements for 22 Micro Hydropower Plants with 24.6 MW.
The current installed energy production capacity is 186 MW while the country targets to scale it up to 563 MW by 2018.