World Bank provides financial boost to Rwandan energy sector
The World Bank has signed a financing agreement with Rwanda worth US$60mn, which will see the global bank help boost the country’s energy rollout programmeThe money will be part of an additional financing loan agreement with the International Development Association (IDA) and will go to the Electricity Access Roll-out Programme (EARP). The 30-year loan agreement was signed between the Rwandan minister of finance and economic planning, Claver Gatete, and World Bank country manager, Carolyn Turk.
Gatete said, “The agreement will avail the US$60mn to bridge the financing required to maintain EARP’s momentum as the government of Rwanda continues to mobilise additional resources to scale up household connections.”
The Rwandan government has plans to connect at least 70 per cent of the country’s households to the national power grid.
About US$45mn of the World Bank grant will be allocated for improving the general national grid roll-out while US$5mn will go to green connections, which will involve supporting a range of activities to scale up affordability for consumers, and promoting energy efficiency and productive use, according to a statement from the ministry.
The remaining US$10mn will be dedicated to enhancing technical assistance during the implementation of the programme.
Turk pointed out, “We appreciate the brave steps the Rwandan government has continued to take in providing reliable and affordable energy to its people and this is what has encouraged us to continue partnering with it.”
Source: African Review