Rusizi III Hydropower plant construction due December, expected to provide cheapest energy

By The Inspirer

The Minister of Finance and Economic Planning, has said the construction of Rusizi III hydropower plant project is expected to start by December 2022 after a review that resulted in its increased capacity and power cost reduction.

Uzziel Ndagijimana made the disclosure on Friday, April 1, 2022 while responding to MPs’ concerns over delays in the implementation of some projects which lead to loan repayment by the Government before they start being implemented or yielding results.

He indicated that the plant capacity under the project increased from 147 MW to 206 MW, and the cost of energy it will produce went down from $11.6/MW to $7.3/MW as a result of additional studies that were carried out.

It is a regional country between CEPGL member countries (Burundi and DR Congo and Rwanda) and the power to be generated from the plant will be shared equally among the three member States. CEPGL is he Economic Community of the Great Lakes Countries.

According to the Chamber of Deputies, it was expected that the hydropower plant project would start being implemented in January 2017. However, that has not been until know.

Ndagijimana said that the first step of this project was to mobilise initial resources among the three countries in order to attract private investors, indicating that such financing was gotten from the African Development Bank.

Data from its funders indicted that the project would cost an estimated $650-700 million, and would produce power that was expected to cost US 11 to 13 cents per kWh.

Information from the Ministry of Finance and Economic Planning suggests that the project cost decreased to $503.4 million.

Meanwhile, Ndagijimana said that the tripartite agreement [related to the project execution] between the CEPGL member States – Burundi, DR Congo and Rwanda – took longer than expected.

After getting private investors to venture into the project, Ndagijimana said its study was reviewed in a bid to find ways to increase the energy production capacity and lower its cost.

“It required conducting additional studies that took time. But, what is good is that the intended objective was achieved [because] the power plant production capacity increased from 147 MW to 206 MW, while the tariff of power to be produced by the plant reduced from $11.6/MW to $7.3/MW,” he said.

“This will be the most affordable project among all (projects) we have,” he said.

The project, he said, is a joint venture between three countries, and private investors, adding that it has sponsors. This situation, he said, makes it difficult for the Government of Rwanda to have full control on the project.

Moe about the project

The proposed 206 MW Ruzizi III is planned as a run-of-river hydropower project located on the Ruzizi River, which forms the border between DRC and Rwanda in the region. The Ruzizi River flows from Lake Kivu t Lake Tanganyika.

Information from the Ruzizi III Energy Limited (REL), the project is expected to reach financial close in this year and to be operational in 2025/ 2026.

REL is a company incorporated in Rwanda as a special purpose vehicle for the development, construction, and operation of the Project.

On December 16, 2015, the African Development Bank Group approved $138 million of loans and grants to finance the Ruzizi III Hydropower Plant Project.

According to the Group, the project will provide an independent source of green energy, helping the DRC, Rwanda and Burundi to meet their growing energy needs, and contribute to the sustainable socio-economic transformation of the region.