Ruzizi 3 Regional Hydropower Project

pipeline

The Ruzizi 3 Regional Hydropower Plant Project (Ruzizi 3 HPP or Project), which will have an installed generation capacity of 206 MW, is located in Central Africa along the Ruzizi River which forms a natural border between Rwanda, Burundi and Democratic Republic of Congo (DRC), flowing southwards from Lake Kivu into Lake Tanganyika. Ruzizi III will be located downstream of the existing Ruzizi I (29.2MW) and Ruzizi II (43.8 MW) HPPs, commissioned respectively in 1958 and 1989. Ruzizi I HPP is located 3 km downstream of the outlet of Lake Kivu and controls the discharge from Lake Kivu. A fourth hydropower scheme, Ruzizi IV, is also planned in the future. The Ruzizi 3 HPP is configured to include the construction of a dam (51 meters high), a 3.8 km long headrace tunnel, a power station (206 MW installed capacity with an expected annual production of 1,140 GWh) and a 7 km long double circuit 220 kV transmission line to a substation at Kamanyola which is adjacent to the common border between the three countries. It includes a compact reservoir (approx. 46 hectares of inundated surface area) to provide regulation capacity and support the daily peak demand of the three countries. The scope of the Project also includes the following ancillary infrastructure: (i) permanent roads and access roads (9.6 km in DRC and 19.5 km in Rwanda), (ii) quarries and Borrow pit sites, and (iii) Spoil Disposal Areas. The project will include four components funded by various sources, including the CSs, concessional and non-concessional lenders, and the private sponsors: (i) Component 1: Hydropower Facility; (ii) Component 2: Substation and transmission lines; (iii) Component 3: Local area development; and (iv) Component 4: Project management and technical assistance. The IDA financing, credits and grants totaling US$260 million, will be provided either jointly or in parallel with the other lenders . Component 1: Hydropower Facility. This component aims at developing the hydropower facility as an Independent Power Producer (IPP). It includes the Engineering, Procurement and Construction (EPC) contract for the 206 MW hydropower facility, with an estimated cost of US$538 million. It also includes the associated project development, construction supervision, insurance, contingencies and project financing costs. The single turnkey EPC contract will cover the following items: (i) the access roads to the hydropower facility; (ii) the 51 meter high embankment dam, the river diversion works, the spillway, the bottom outlet, the eco-flow bypass and associated mini-hydro unit; (iii) the power intake, the 3,800 meter long concrete-lined headrace tunnel, the surge shaft, the 360 meter long steel-lined tunnel and penstock; (iv) the surface powerhouse with three turbine-generator units; (v) the switchyard, the 30 kV site distribution lines and the 7.1 km long 220 kV transmission line to the Kamanyola substation (in DRC); and (vi) the employer’s camp. Key resilience measures will ensure that the infrastructure is better equipped to withstand the challenges posed by climate change. The team is also exploring support from PPIAF and GIF to pilot the toolkit for resilient PPPs in hydropower projects, which would be highly beneficial to adopt innovative and best practices to include resilience measures as part of the EPC contract. The power generated by the facility will be sold equally (one third each) to the electricity utility companies of the three countries, REGIDESO in Burundi, SNEL in DRC and EUCL in Rwanda, together referred as the Offtakers, under Power Purchase Agreements signed in 2019. Component 2: Substation and Transmission Lines. This component, considered as associated facilities to component 1, will also benefit from support to pilot the climate resilience toolkit. It includes the construction of the Kamanyola 220 kV substation with a dispatch and cascade coordination center , as well as the three 220 kV transmission lines to evacuate electricity from the hydropower facility to the three countries, departing from the Kamanyola substation, along the following routes: (i) Burundi (Kamanyola-Bujumbura, approximately 77 km) ; (ii) the eastern provinces of DRC, which are currently isolated from the country’s national grid (Kamanyola-Buhandahanda, approximately 68 km) ; and (iii) Rwanda (Kamanyola-Karongi, approximately 93 km) . The climate-resilient transmission lines (reinforced poles and cables against floods and heatwaves, durable material used for transformers) are designed to withstand floods and heatwaves, using durable materials for transformers, and will help create a regional grid backbone for future power trade. Component 3: Local Area Development Program. This component will fund a local area development program (LADP) in each country, forming part of risk mitigation through community-focused activities. The LADP area includes the Groupement of Kashenyi and Karhongo in Walungu territory in DRC; Nzahaha and Bugarama sectors of Rusizi District in Western Province in Rwanda; and communes of Rugombo and Buganda in Cibitoke Province in Burundi, totaling around 385,115 people across 704 km²; about 547 average people per km2 (Burundi - 367/km2, DRC - 753/km2 and Rwanda - 874/km2). The LADPs were created with community input and feature investments in socio-economic infrastructures, livelihoods support, strengthening of existing Technical and Vocational Education and Trainings (TVETs), and tailored support to credit and saving groups. A validation process will prioritize investments based on community needs and in coordination with local authorities. Aimed at improving services and livelihoods for vulnerable groups, women, and youth, the program also seeks to enhance local administrative capacities. This approach promotes sustainable social benefits and adheres to the Bank's environmental and social framework (ESF) by mitigating adverse impacts and compensating for loss of physical assets and livelihood opportunities, connected to the routing of transmission lines and other project-connected infrastructure.Component 4: Project Support. This component will support project management, technical assistance, and capacity building for the CSs, public utility companies, and EGL. It includes advisory and analytical work to strengthen institutional, legal, and regulatory frameworks, and facilitate electricity trade and dispatch between public utilities. Associated Facilities that will help dispatching the electricity produced by Ruzizi 3 include:• Kamanyola 220 kV Substation is situated in DRC and developed by EGL with financial support from KfW. A Feasibility Study, ESIA and RAP were prepared in 2014. These studies will be updated by appraisal to reflect recent developments in the Ruzizi III Project and align with the World Bank’s Environemental and Social Standards.• Kamanyola-Buhandahada 220 kV Transmission Line. It’s situated in DRC and is being developed by EGL with financial support from the KfW. Pre-Feasibility studies for the 68.5 km line have been completed. However, the studies will need to be updated by appraisal to take into account changes made to the Ruzizi-III HPP, and align with the World Bank’s Environemental and Social Standards.• Kamanyola - Bujumbura 220 kV Transmission Line is developed in Burundi by REGIDESO with financial support from AfDB and KfW. Burundi line is already under construction and completion of works is expected in 2023.• Kamanyola – Karongi 220 kV TL is developed by Rwanda Energy Group (REG) with financial support from the EIB. Feasibility studies are underway and ESIA is due by appraisal.• Kamanyola - Kibuye 220 kV TL is developed by Rwanda Energy Group (REG) with financial support from the EIB. A pre-feasibility study and ESIA were prepared in 2014. However, the feasibility study and ESIA will be updated by appraisal and a RAP prepared.The Project will be an important part of the power system in the three Contracting States (CS). It will offer si