Third Rwanda Energy Sector Development Policy Operation

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The development objective of the Third Rwanda Energy Sector Development Policy Financing Project for Rwanda is to enable fiscally sustainable expansion of electricity services in Rwanda. The proposed operation is built around two pillars: pillar A contains measures led by the Ministry of Finance and Economic Planning (MINECOFIN) and the Rwanda Utilities Regulatory Authority (RURA) that directly contain the fiscal impact of the power sector, including tariff reforms. Pillar B contains measures led by the Ministry of Infrastructure (MININFRA) and Rwanda Energy Group (REG) that improve the operational efficiency, affordability, and accountability of electricity service, divided into four themes: (a) transitioning Rwanda to a least-cost and low-carbon energy mix; (b) increasing access to affordable and reliable electricity - specifically, the adoption of least-cost principles in the expansion of electricity access; (c) improving the accountability and transparency of REG - specifically, the modernization of REG’s accounting and the publication of its financial statements, which is a critical step toward the listing of Energy Utility Corporation Limited (EUCL) and improving transparency to REG’s balance sheet; and (d) improving the operational efficiency and quality of electricity services, which will lead to lower cost of service and higher revenues.