Government, Swiss firm sign US$15m energy deal

The government has signed a $15 million (approximately Rwf9.7billion) energy agreement with a Swiss based company to develop hydro power plants in the Southern Province.The Swiss firm, Renewable Energy For Accelerated Development (REFAD), through its subsidiary in Rwanda on Thursday, pledged to construct and maintain a 5 megawatts (MW) hydro power plant near Mushishito and Rukarara rivers in the Southern Province.According to a statement, Rwanda Development Board (RDB) and the Energy, Water and Sanitation Authority (EWSA) signed on behalf of the government while REFAD Rwanda signed for the mother company.“In order to reach our target of adding 80MW to the national grid by 2014, we need the support of private investment. We are grateful for REFAD’s investment to enhance energy sector development in Rwanda,” said Prof. Silas Lwakabamba, the Minister of Infrastructure.The power purchasing agreement seeks to increase power generating capacity, reduce power import and provide waterway access for local communities.According to the agreement, the investment will enhance economic gains and promote the development of renewable energy technologies.The hydro-power project facility is expected to be completed within a period of 26 months.Clare Akamanzi, the acting chief executive officer of RDB, said: “Increased investments in the energy sector resonates well with this emerging sector in Rwanda’s economy.”She added investment in Rwanda had reached more than $680 million and the country was focusing on promoting private sector driven economy.“Rwanda has predictable policies, which REFAD has taken advantage of, which will increasingly lead to more private investments in the energy sector and eventually lead to growth, especially in the manufacturing sector and job creation,” she noted.REFAD is a development and holding company focusing on renewable energy sources in Africa and the firm deals mainly in the energy sources among others, Hydro, Wind, Thermal, Biomass (liquid and solid) and Solar.The government has unveiled Rwf3 trillion ($4.7bn)-road map for energy production and accessibility over the next five years.The plan is to progressively tap 200MW from peat, 310MW from geothermal, 320MW from hydro power, and 300MW from methane gas, among others.At the moment the country produces 110.8MW equivalent to 16 per cent in terms of domestic accessibility. With 1, 000MW, accessibility could reach 70 per cent.REFAD Rwanda is a subsidy of Omnicane, a Mauritius stock market listed company and REFAD group AG, a Swiss Company.

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Government, Swiss firm sign US$15m energy deal