MINECOFIN

MINISTRY OF FINANCE AND ECONOMIC PLANNING

REPUBLIC OF RWANDA

The Government of Rwanda and Republic of Korea sign US$ 66.2 million loan agreement to reinforce access to electricity

Posted on 26.11.2020

November 26, 2020: The Governments of Rwanda and the Republic of Korea today signed an arrangement for a loan from the Economic Development Cooperation Fund for the electricity transmission and grid expansion project worth US$ 66.2 million (Approximately Frw 64 billion). The loan is concessional and will be repaid in forty (40) years including a grace period of fifteen (15) years, at the interest rate 0.01% per annum.

Once complete, the project will reinforce the national power system through expanding the transmission grid and provide stable power.
 
Speaking after the signing of the arrangement for a loan agreement, the Minister of Finance and Economic Planning Dr. Uzziel Ndagijimana said: “This project will support our National Strategy for Transformation targets of 100% access to electricity for every Rwandan in 2024 from the current 54%. We thank the Government of the Republic of Korea for the continued support and collaboration in many areas of our economy but most importantly Agriculture, Education, Digitalization, and Water and sanitation.”

Ambassador Plenipotentiary and Extraordinary of the Republic of Korea to Rwanda, His Excellency Jin-weon CHAE, said: “Korea will continue its close partnership with Rwanda in its journey towards sustainable development. I believe this project will provide solid electricity infrastructure, which is vital for industrial development and improvements in the quality of life of Rwandans”.

The project will support the grid extension of Gasogi, Mamba, Nyabihu, Rwabusoro and Nyabarongo power sub-stations as well as connecting transmission lines and line bays.

This project comes to complement other projects in pipeline in a multi-Donor Program to support the Energy sector. These include financing from the World Bank, Africa Development Bank, European Investment Bank, Agence Française de Developpement (AFD), OPEC Fund for International Development (OFID) and Saudi fund for Development.


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