Rwanda receives two loans from AfDB and AGTF totaling $180 million for its energy project, the Financing for the Transmission System Reinforcement and Last Mile Connectivity project.

April 30, 2022

The Financing for the Transmission System Reinforcement and Last Mile Connectivity project receives two loans amounting to $180 million from the African Development Bank (AfDB) and the Africa Growing Together Fund. AfDB sovereign window provided $140 million and its resources while the Africa Growing Together Fund provided $40 million. Rwanda plans to use this funding to achieve its 100% electricity access goal by 2024. The project aims to provide electricity to rural communities and decrease greenhouse gas emissions.

The construction required includes building medium voltage lines that is more than 1,000 km long, low voltage lines reaching 3,300 km, high voltage lines up to 137 km, and 6 substations needed to reinforce the grid. In addition, over 1,200 distribution transformers and related infrastructure will be installed or upgraded. The project will connect 77,470 households to the electricity network for the first time. It will also connect 75 schools, 8 health centers, and 65 administration centers.

In addition, it will have hydropower plants that release 125MW clean energy. It will also create 455 permanent jobs and 760 part-time jobs, 30% for women. The project will improve the quality of life by enhancing education, health, and promoting private sector growth, which will play a part in Rwanda’s social and economic transformation agenda. This agenda aims to move Rwanda from a developing country to a middle-income country by 2035.

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