Calls for private investments in energy sector

NYARUGURU – The Prime Minister, Dr Pierre Damien Habumuremyi, has challenged private investors to venture into the energy sector to increase the country’s power generation capacity.  

Saturday, May 26, 2012

NYARUGURU – The Prime Minister, Dr Pierre Damien Habumuremyi, has challenged private investors to venture into the energy sector to increase the country’s power generation capacity.   Habumuremyi made the call while touring Mazimeru Micro-Hydropower plant in Nyaruguru District, which was developed by local investors.The plant, generates 0.5 MW (500 kilowatts) that is connected to the national electricity grid.The plant in Muganza sector, was developed by local investors under the Energie Nyaruguru (Enny) in conjunction with a German enterprise, CARERA.The Premier commended the initiative and noted that other investors should emulate the gesture, urging the owners to connect nearby households.Speaking to The New Times, the State Minister for Water and Energy, Emma Francoise Isumbingabo, said investing in energy generation is a worthwhile venture."It is clear that investing in this sector is beneficial both for the investor and the country. The government has put up incentives for those wishing to invest into energy and we hope to get as many as possible,” she said, observing that today all imported materials for such projects are exempted from duties.Mazimeru plant was constructed at a cost of Rwf 1.4 billion.According to Juvenal Hakizimana, the Chairman of the Board of Directors of ENNY LTD, the group projects that within 5 years, they will have recovered the cost of their investment."We are hopeful that this project will benefit us and the community”.Hakizimana revealed plans to put up another plant, which will generate another 450 kilowatts. He observed that the construction of the new site is expected to start in one year.As part of the tour, the delegation also visited the Nshili I micro hydropower project currently under construction in Busanze sector, Nyaruguru District.Once completed the plant will have the capacity to generate 400 kilowatts.Habumuremyi expressed disappointment over the slow pace of activities and asked all involved parties to ensure they beat the deadline.The construction, which started early this year, is expected to be completed by July 2012.Nshili hydropower was seriously damaged by heavy rains which hit the area in 1997. In 2008, the government contracted a Sri-Lankan firm to rebuild the site but it abandoned it before completion.  The plant is part of seven micro hydropower plants currently under construction countrywide; Nyabahanga (Karongi district), NShili (Nyaruguru), Janja (Gakenke), Mukungwa (Musanze), Gashashi (Rutsiro), Nyirabuhombohombo (Nyamasheke) and Rugezi in Burera district.