Rwanda allocates Frw 70 billion to relocate families for Nyabarongo II hydropower project

By Boris Prince.

The Government of Rwanda has set aside Frw 70 billion to compensate and resettle families living in areas earmarked for the construction of the Nyabarongo II hydropower dam, a flagship energy project expected to add 43.5 megawatts to the national grid.

The dam, which will create a water reservoir of about 800 million cubic meters, is considered one of Rwanda’s most ambitious infrastructure investments. Beyond electricity generation, it will also support irrigation, aquaculture, inland water transport, sports, and tourism.

Stretching across nearly 67 kilometers, the project will affect communities in Nyarugenge, Rulindo, Gakenke, Muhanga, Kamonyi, Nyabihu, Ngororero, and Musanze districts.

Felix Gakuba, Director General of the Energy Development Corporation Limited (EDCL), said some households have already received compensation and relocated, while others are finalizing paperwork. He explained that families affected by the reservoir will be moved to modern villages near their original homes, with access to schools, health centers, and basic infrastructure.

The dam wall is under construction between Ngamba sector in Kamonyi District and Muhondo sector in Gakenke District. Once complete, the reservoir will cover about 30 square kilometers, with a depth of 59 meters.

Authorities estimate that around 3,400 households will be resettled. The construction phase is expected to create around 1,000 jobs, with overall costs surpassing Frw 320 billion, excluding resettlement expenses.

Officials stressed that environmental and social concerns are being addressed. Water levels may temporarily drop during construction in rainy seasons, but without affecting supply.

The project is financed through a concessional loan agreement signed in 2020 between Rwanda and China, with the China Exim Bank providing Frw 308.9 billion (USD 214 million).