MPs set six-month deadline for construction of houses affected by Rusumo project

Members of Parliament have given the Ministry of Infrastructure (MININFRA) a six-month deadline to repair as well as construct houses affected by blasting during the execution of Rusumo hydropower project on the Rwanda-Tanzania border. The $468.6 million project is planned to generate 80 MW and the power output will be shared equally by three countries namely Rwanda, Tanzania and Burundi. ALSO READ: Exploring Rusumo hydroelectric power plant The project implementation started in 2014. The completion was expected in 2020 before extending the deadline to June, 2024 due to various challenges. ALSO READ: A closer review of changes to Rusumo hydropower project According to an audit carried out by Members of Parliament in the Lower Chamber, 80 families affected by blasting during the power plant construction need new houses while 35 houses need repair of their damaged houses. “The works to reconstruct residents’ houses damaged by the project activities have stalled. Meanwhile we have been assured that money to construct and repair the houses have now been secured. The land which had been secured for the families has been changed and the houses will be constructed for them on another land. That is why we recommended that the houses be available within six months when the project is fully complete in June, 2024,” said Public Accounts Committee chairperson Valens Muhakwa. He said in addition to damaged houses in need of reconstruction, a youth centre to be established by the project has also not yet been completed. ALSO READ: Rusumo power project to benefit 500,000 households The Public Accounts Committee, after carrying out the assessment of the project implementation, has recommended the government to ‘fast-track the construction of the damaged houses within six months’. “There should be assurance if construction of 80 houses and repairing 35 houses will be complete in six months,” said MP Albert Ruhakana. The houses are set to be reconstructed under the funding from the World Bank. Power trading Meanwhile the power grids of Burundi, Rwanda and Tanzania have been fully interconnected through the 80 MW Regional Rusumo Falls Hydroelectric Project. ALSO READ: Bugesera Airport to be connected to new Rusumo power plant The transmission line for Burundi is 160 kilometres and runs from Rusumo to Muyinga and onwards to Gitega. For Rwanda, the line is 118 kilometres and it runs from Rusumo to Buge- sera onwards to Shango, while that of Tanzania is 94 kilometres and runs from Rusumo to Nyakanazi. When fully operational, this interconnection will present the countries with an opportunity to trade power among the three countries and even to neighboring countries through a power ‘wheeling’ agreement according to Eng. Jacob Manyuon Deng, the Nile Equatorial Lakes Subsidiary Action Program (NELSAP-CU) Regional Programs Officer for Power and Trade. ALSO READ: Rwanda-Uganda power trading reduces dependency on diesel plants A ‘wheeling’ agreement allows two countries that do not share a border, to trade power through a third country network at a fee. The power utilities of the three countries executing the Transmission Lines, Tanzania Electric Supply Company Limited (TANE- SCO), Régie de Distribution d’Eau (REGIDESO) of Burundi and Rwanda Energy Group (REG-EUCL) signed a Power Purchase Agreement (PPA) with Rusumo Power Company Limited (RPCL) on various dates in 2023. The Power Purchase Agreement (PPA) is a contractual agreement between energy buyers and sellers and through it the parties come together and agree how they will buy and sell energy. The power purchase agreement signed between the Rusumo Project and the utilities of the three countries operates on a ‘take or pay model.’ Through this model, RPCL declares availability of power, then based on that availability, countries, through the utilities, place their orders for power. From that point the order becomes a ‘dispatch instruction.’ At this initial point, utilities place an order not exceeding the countries’ agreed allocation of 27MW. Benefits of Interconnection with connection to multiple buyers of power, Rusumo project has a bigger market to sell its power, meaning the plant has longer running hours that makes it economical. Once the company clears loans used to construct it, it can offer power at an even cheaper rate.

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MPs set six-month deadline for construction of houses affected by Rusumo project