Government of Rwanda and The Arab Bank for Economic Development in Africa (BADEA) on the sidelines of the ongoing first 2019 BADEA Board of Directors Meeting in Kigali signed a concessional loan agreement worth US$ 20 million (Approximately Frw 19 Billion) to finance rural electrification project in Nyamagabe and Nyaruguru Districts.
The project envisages supply and construction of distribution networks and meters and service cables to connect houses, commercial and public centers in Nyaruguru and Nyamagabe Districts.
Speaking after the signing of the loan agreement, the Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana said that the project supports the national electrification strategy which is among the driving factors of economic transformation in Rwanda. “This project fits with our National Strategy for Transformation which aims to increase access to electricity to 100% by 2024,” Minister Ndagijimana said.
Minister Ndagijimana underscored that through NST1 and Vision 2050, Rwanda aspires to become a private-sector led economy and called on BADEA to consider private sector financing through increased lines of credits, public-private partnerships and equity financing.
Engineer Yousif Bin Ibrahim AL BASSAM, the chairman of BADEA Board of Directors noted that: “The project is a significant and encouraging sign of strong alliance of the cooperation between BADEA and Rwanda. We are committed to further working with the Government of Rwanda to improve the wellbeing of Rwandans and achieve more prosperity.”
The Project is expected to connect 13,324 households and 12,414 households in Nyaruguru and Nyamagabe respectively, thereby increasing the percentage of access to electricity in both districts from 33% currently to about 52% at the end of the project. In addition, 96 productive units including primary and secondary schools, coffee washing stations, administrative units, water pumping stations, telecom towers and markers in both district are expected to be connected to electricity. The project is expected to be completed in 2023.
Rwanda and BADEA cooperation spans five decades. Some of the areas that have benefited from this cooperation include agriculture, infrastructure, energy, water and transport. The sectors remain key to achieve the ambitions in the NST1.