THE African Development Bank Group’s efforts to
improve sustainable energy supply and access in Africa took a leap forward with
the Board of Directors’ approval of the Regional Rusumo Falls Hydropower
Project.The Bank Group allocated US $97.3 million from the
African Development Fund (ADF) and the Nigeria Trust Fund for the multinational
project, which will support the development of sustainable energy
infrastructure.
An additional US $16 million grant from the Sustainable Energy
for All (SE4All) window of the EU-Africa Infrastructure Trust Fund was recently
mobilized by the AfDB Group to help finance part of the Burundi transmission
line from the Rusumo Falls power plant.
The Rusumo Falls project will increase renewable
power generating capacity and access to electricity in Tanzania, Rwanda and
Burundi.
The project
has two components: an 80 MW hydropower generation plant and transmission lines
and substations. The Bank finances the transmission facilities of Rusumo Falls
Hydropower Project. Beneficiaries of the project include the households,
industries, SMEs and businesses in Burundi, Rwanda and Tanzania, who will gain
access to cheaper, more reliable and clean electricity.
Construction of the transmission facilities is
expected to be completed by August 2018; the three countries will share the
power generated equally. The project will enhance the process of regional
integration by the countries developing and managing the joint assets.
“Rusumo Falls is one of many projects financed by
the AfDB in response to a crisis in low-energy access rates, limited
infrastructure development in the region and regional projects that enhance
regional stability through increased cooperation and integration among
countries.
Africa has incredible untapped hydropower potential:
only four per cent of which has been exploited,” explained Alex Rugamba,
Director of the AfDB’s Energy, Environment and Climate Change Department.
“Through projects such as the Rusumo Falls project
we are looking to leverage Africa’s natural assets for universal access to
modern, reliable and affordable energy services on the continent
The project will increase hydroelectricity supply
capacity to relieve the power deficit in all three countries. It will also
allow them to address their low energy access rates.
Rwanda and Tanzania will be able to displace some of
the energy generated from high cost imported fuel with cheaper hydropower
thereby reducing the current electricity tariff. In the case of Burundi, the
project will provide 50% of the current peak power demand, which will allow the
country to expand access and other economic activities, and reduce CO2
emissions.
The Rusumo Falls project is a Programme for
Infrastructure Development for Africa (PIDA) priority project.
In 2012,
African Heads of State endorsed a set of priority energy projects to be
implemented by 2020 as part of the PIDA.
Rusumo Falls is one of nine hydropower projects
identified for the PIDA energy infrastructure program, which focuses on major
hydroelectric projects and interconnects the power pools between countries.
The AfDB’s support to the Rusumo Falls project has
spanned several years. In 2006, the Bank provided an ADF grant of US $4 million
to the Nile Basin Initiative to finance the technical, financial, economic and
social feasibility studies for the transmission lines of the Rusumo Falls
hydroelectric plant.
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