THE World Bank has approved $150 million in financing to improve access to modern energy for households, enterprises, and public institutions in Rwanda and to enhance the efficiency of electricity services.
$75 million of the amount will be provided as grant funding while $75 will be provided as a loan.
Building on the achievement of previous World Bank support to the energy sector, the Rwanda Energy Access and Quality Improvement Project (EAQIP) is aiming to improve Rwanda’s progress towards achieving UN Sustainable Development Goal 7 (SDG7) to ensure access to affordable, reliable, sustainable and modern energy for all, while also contributing to the country’s aim of reducing reliance on cooking fuel by 50 percent.
‘The proposed project is well-timed to build on the World Bank’s decade-long support to the Government’s energy sector agenda. It will contribute directly to Rwanda’s push toward universal energy access by 2024 and universal access to clean cooking by 2030,’ said Rolande Pryce, World Bank country manager for Rwanda. ‘We are honoured to be a long-term partner in this journey.’
Rwanda EAQIP aims to improve electricity access by providing funding for the country’s ongoing programme of expanding grid connections for residential, commercial, industrial, and public sector consumers, as well as by providing grants to reduce the costs of off-grid solar home systems. The project will also enhance the availability and efficiency of low-cost renewable energy by restoring capacity at the Ntaruka Hydro-Power Project, reducing voltage fluctuations on transmission lines, and supporting the national smart meter programme.
Clean cooking operation in Africa
The project includes the World Bank’s largest clean cooking operation in Africa, and the first project co-financed by the recently launched Clean Cooking Fund (CCF), hosted by the World Bank’s Energy Sector Management Assistance Program (ESMAP).
The CCF will provide $20 million for clean cooking, with $10 million provided as a grant and $10million extended as a loan.
The project targets 2.15 million people, leveraging an additional $30 million in public and private sector investments. By incentivising the private sector and improving the enabling environment, the project aims to develop a sustainable market for affordable clean cooking solutions in Rwanda.
The project is part of the Rwanda Universal Energy Access Programme (RUEAP), which coordinates the efforts of development partners supporting the energy sector to contribute to the achievement of the targets set out in the National Strategy for Transformation (2017-24).
‘The World Bank is proud to have led the RUEAP on behalf of the development partners, including the French Development Agency (co-financing the EAQIP). The World Bank looks forward to supporting the implementation of the ongoing program and expects to report positive outcomes in the lives of Rwandans’ said Norah Kipwola, World Bank senior energy specialist and the project task team leader.
Follow @BriefingAfrica on Twitter
Follow @jonansah on Twitter