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AfDB approves $180mn in loans

to reinforce transmission, last-

mile connectivity in Rwanda

ZIMBABWE THE African Development Bank (AfDB) has agenda, which aims to transition Rwanda from a
approved two loans amounting to $180mn developing country to a middle-income country
to co-finance a major energy project that by 2035,” she said.
will extend electricity access to rural areas in The bank-financed grid access component
Rwanda while reducing greenhouse gas (GHG) of the project will target households in southern
emissions. This move follows the approval of an Rwanda, where connection rates are below 34%.
$84.2mn credit in May 2021 from the resources The main cities targeted are Gisagara, Huye,
of the African Development Fund (ADF), the Nyamagabe, Nyanza, Nyaruguru, and Ruhango.
concessional window of the Bank Group, for the The project will also strengthen the network
same project. in Nyarugege, Nyamata, Kigali Hub and other
Financing for the Transmission System Rein- zones across the country where rising commer-
forcement and Last Mile Connectivity project cial activity has pushed demand for electricity
comprises $140mn from the AfDB sovereign upward.
window and a $40mn co-financing from Africa Dr. Kevin Kariuki, AfDB’s Vice President
Growing Together Fund (AGTF), as well as for Power, Energy, Climate and Green Growth,
resources from the ADF. remarked: “The bank is pleased to play an impor-
The project will entail the construction of tant role in actualizing Rwanda’s Transmission
more than 1,000 km of medium-voltage and Reinforcement and Last Mile Connectivity Pro-
3,300 km of low-voltage lines to boost last-mile ject, which will not only contribute to addressing
access. It will also see 137 km of high-voltage the country’s energy poverty, including pursuit
lines and six substations built to strengthen of universal access by 2024, but also aligns closely
the grid and will encompass the installation or with the bank’s High 5 priorities. Moreover, the
upgrade of more than 1,200 distribution trans- project exemplifies the transformational impact
formers and related infrastructure. of effective co-ordination amongst development
“The rationale for the bank’s intervention is partners.”
to support the country’s pursuit of 100% access The Transmission Reinforcement and Last
to electricity by 2024,” said Aissa Tour-Sarr, the Mile Connectivity project is a component of the
AfDB Country Manager in Rwanda, during the $670mn multi-donor Rwanda Universal Energy
approval of the project. Access programme, which is being co-financed
“The project will contribute to enhancing the by the World Bank Group, OPEC Fund for Inter-
quality of life by facilitating improved education national Development, Saudi Fund for Develop-
and health provision, as well as promoting pri- ment, Agence française de développement and
vate sector growth, [thereby] contributing to the European Investment Bank (EIB).™
Rwanda’s social and economic transformation

Week 17 28•April•2022 www. NEWSBASE .com P9