Rwanda receives $266 million loan from AfDB to improve electricity reliability

Image: AfDB Group

The African Development Bank (AfDB) has approved a $266 million loan to Rwanda in a bid to support its electricity supply reliability.

The loan facility will be channelled to the Scaling Up Electricity Access Program (SEAP II) and is split into a $192 million AfDB loan and a credit of $74 million from the African Development Fund.

The funding will support construction of 795km of medium voltage and 7,317km of low voltage lines, boosting nationwide connectivity and lighting up previously unserved communities.

The program is expected to result in significant reductions of time and frequency of service interruption to customers and network losses, and will ultimately contribute to ensuring financial sustainability of the sector.

“The approved program will support government in adding over 193,000 new on-grid and over 124,000 off-grid connections,” AfDB Vice President for Power, Energy, Climate Change and Green Growth Amadou Hott, said in a statement.

Rwanda received a $46 million investment from the bank in 2013 for the first phase of the program, using investment-lending financing, which is now 90 percent complete and ahead of schedule.

The SEAP II loan is aligned to the bank’s 10-year strategy and current Country Strategy Paper for Rwanda.

This operation raises the AfDB’s ongoing energy portfolio in Rwanda from $184 million to $450 million, supporting eight operations, three of which are being implemented jointly with neighbouring states.