Rwanda is courting reputable international and local financiers to fund the peat to power project that is expected to add 80 MW to the national grid, for the country to meet the 563 MW target by 2018.
The deal was announced during the Annual Forum on Customer Due Diligence and Corporate Governance in Kigali on Wednesday.
Rwanda is looking at Afreximbank, Preferential Trade Association-PTA bank, African Finance Corporation and Development Bank of Rwanda-BRD to finance the project at a tune of $ 225 million.
“We have ambitious plans to meet our energy target to be able to provide the required energy for our growing economy,” Amb. Claver Gatete, Minister of Finance and Economic Planning told KT Press adding that Afreximbank is extending U$ 25 million towards the project.
Alex Kanyankore, Director General of Development Bank of Rwanda, the local financier says that negotiations for financing the project are expected to be completed by mid-November this year for the project to start early 2017.
“There are a few partners who have not yet finalized but negotiations have reached 95 percent,” Kanyankore said.
The peat to power project is located in Akanyaru marshland, Gisagara district and is expected to generate 80 MW to the national grid.
“We are pleased to be part of Rwanda’s fastest growing economy on the continent and the entire world,”said Dr George Elombi, Executive Vice President Afreximbank during the Annual Forum.
With less than 200MW of energy of hydroelectricity and methane gas all combined, Rwanda has ambitious target to add more than 300 MW to the national grid to upgrade the power generation to 563 Megawatt by 2018.
The country is already running several mega projects that would help meet the deadline. Through World Bank, the government has already received funding for two cross border hydro power projects-Rusumo and Rusizi III projects are expected to bring around 80 MW to the national grid.
At the Forum, a need to put up system that addresses challenges of money laundering as well as illicit outflows was highlighted.
According to African union the continent loses U$ 50 billion annually through illicit financial outflows which is higher than the donation Africa receives.
“These illicit activities have significant implications for growth and economic development and financial soundness of banks and corporates,” Minister Gatete noted.
“In an environment where there is a perception of prevailing economic and financial crime legitimate economic activity is undercut, investment discouraged, breeds further suspicion and undermines government legitimacy.”
The forum brings together bankers, policy makers and regulators across the continent to discuss current practices and evolving trends in customer due diligence.
Experts are also focusing at how African countries can leverage technologies, cross border cooperation and collaboration among regulators, financial institutions and corporates.