EU-AIP extends €8m aid for hydropower project in Africa

15 / 01 / 2020

By Marwa Nassar - -

The European Union’s Africa Investment Platform (EU-AIP) pledged an €8 million aid to the African Development Bank Group to support the preparation of the Ruzizi IV Hydropower Project.

The plant will be situated on the Ruzizi River between Rwanda and the Democratic Republic of Congo and will supply electricity to the DRC, Burundi and Rwanda.

When completed, Ruzizi IV is projected to produce 287 MW of electricity and exploit the Ruzizi River’s full hydropower potential. Two power plants are already in operation: Ruzizi I produces 29.8 MW and Ruzizi II, 43.8 MW; a third, Ruzizi III, with a projected 147 MW output is under development with bank support.

The project will provide electricity to millions of households, as well as small and medium-sized enterprises and industries, thereby improving the living conditions of the regional population. Greater and more reliable access to electricity will also improve the quality of basic social service delivery including health, education, and improved security.

“The African Development Bank played a major role in structuring and raising financing for Ruzizi III, and the lessons learned will be used to successfully develop and implement Ruzizi IV. The use of renewable and affordable electric power will help to reduce poverty, unemployment, greenhouse gas emissions and deforestation, as well as stabilize security in the Great Lakes region,” said Batchi Baldeh, the Bank’s Director for Power Systems Development.

The African bank’s approval on the €8 million grant follows a $980,000 grant approved end-2018 by the New Partnership for Africa Development’s Infrastructure Project Preparation Facility (NEPAD-IPPF), which is a multi-donor Special Fund hosted by the Bank, to co-finance this technical assistance.

Ruzizi Hydropower Plant Project IV meets the goal shared by Burundi, DRC and Rwanda to optimize exploitation of their energy resources by integrating electricity generation, transmission and distribution infrastructure. The project falls within the overall regional energy market framework being developed by the Nile Equatorial Lakes Subsidiary Action Program (NELSAP) and the Eastern Africa Power Pool (EAPP).

Ruzizi IV also aligns with the Bank’s High 5 priority to “Light up and power Africa”, as well as the bank’s strategy on regional integration, and specifically, development of regional energy infrastructure.