Rwanda approves funding for $300 million clean energy project
A bill approving a $300 million financial arrangement intended to support a sustainable and environmentally friendly energy project in Rwanda has been adopted.
The financing of the clean energy project was approved by the Lower Chamber of the Rwandan Parliament on January 11 after Rwanda and the International Development Association (IDA) of the World Bank signed the agreement in Kigali on December 14, 2023, local media The New Times reports.
Uzziel Ndagijimana, the Minister of Finance and Economic Planning, informed Rwanda’s Members of Parliament that the financing included two loans.
According to the finance minister, $100 million will be reimbursed within five years after a six-year grace period, and $200 million will be paid back within 40 years after a 10-year grace period. “Both loans are interest-free,” said the minister.
“It will reduce instability in power distribution in line with enhancing the quality of electricity, efficiency, and reliability in electricity supply,” Ndagijimana added.
Over 420,000 houses in Rwanda are to have electricity access through the project, which is scheduled to be finished in five years between 2024 and 2029, The New Times reports.
About 74.74% of homes in Rwanda were connected to the national grid, while 20.95% used off-grid devices like solar to obtain electricity in the East African nation as of October 2023. According to the Rwanda Energy Group (REG), in the past two decades, the number of on-grid connections has increased by over twelve times.
