Multinational - Ruzizi III regional hydropower plant project (Rwanda)

The Ruzizi III Hydropower Plant Project which is part of the Programme for the Development of Infrastructure in Africa (PIDA) concerns Burundi, the Democratic Republic of Congo (DRC) and Rwanda. It entails the construction of a run-of-river dam (on the Ruzizi River between DRC and Rwanda downstream from the Ruzizi II hydropower dam), a 147 MW power plant and a distribution station. Burundi’s current total capacity will double, while Rwanda’s will increase by half. DRC’s share will contribute to raising supply in the Eastern region currently not connected to the interconnected network, while also significantly reducing the percentage of energy of thermal origin. The project will help to meet the needs of the population and of the economy, in general, in accordance with the national development strategies of the countries concerned, which underscore the importance of ensuring reliable and affordable electric power supply to achieve sustainable economic transformation. The specific objectives of this operation are to: (i) contribute to the development of Ruzizi III for hydropower generation; and (ii) strengthen regional economic integration through the creation of an electricity market. The plan is to implement a project at a total cost of UA 443.40 million (of which UA 98.5 million financed by the Bank’s public sector window and UA 35.62 million expected from the private window) over a period of six (6) years, one year of which constitutes the development phase. This is the first regional project designed as a public-private partnership (PPP) aimed at optimizing the hydropower potential of the Ruzizi cascade. For its implementation, a private partner, acting in the capacity of investor/developer, will be recruited and awarded a concession. This partner will be required to develop the project, be a majority partner in a project company (PC) with the three countries concerned and secure the necessary financing.