Rwanda Energy Sector Rehabilitation and Urban Waste Management

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The overall objective of the project is to promote rational energy policies and to establish the basis for efficient utilization of Rwanda's energy resources, while minimizing adverse environmental implications. The project comprises two main components: (a) strengthening of the institutional regulatory and policy environment; and (b) rehabilitation of key infrastructure in the power subsector. The first component will include: (i) restructuring the Rwandese Utility Company to permit contracting out its operations to a private operator; (ii) consulting services to prepare new statutes and organization chart for the utility and bidding documents for the selection of the private operator, and to assist in implementing its contracting under a lease type contract and in establishing two companies; (iii) implementation of a series of make-ready measures in order to attract qualified private operators; (iv) introduction of incentives to rationalize and improve the efficiency of the charcoal subsector; (v) implementation of environmental and technical guidelines for future development of Lake Kivu's methane gas by private investors; (vi) studies to design and implement a strategy for development of solar home systems as a cost-efficient alternative for electricity in rural areas; and (vii) technical assistance and training to strengthen the Ministry of Commerce, Industry and Handicrafts's capacity to deal with petroleum products issues. The power subsector component includes: (i) rehabilitation and improvements of key power infrastructure for five cities; (ii) improvement in the medium voltage sections; (iii) overhauls of power station and hydraulic structures; (iv) feasibility studies for hydroplants; (v) constitution of a strategic stock of spare parts for plants and substations; and (vi) capacity building and training through scholarships and strengthening of the investment planning and monitoring capacity of the utility staff.