SN Power and Industrial Promotion Services (IPS), the industrial arm of the Aga Khan Fund for Economic Development (AKFED), will lead the construction of the Ruzizi III hydropower plant. This comes from an agreement signed between the governments of Burundi, DRC, and Rwanda. All three countries will benefit from the hydropower plant.
"Ruzizi III is a truly revolutionary project. This is the first privately funded project in sub-Saharan Africa that will use a common regional resource to generate energy that will be shared equally between three countries," said Galeb Gulam, IPS Executive Director.
The project will provide electricity to 30 million people, 70% of whom live below the poverty line in regions where the electrification rate is on average 6%, say the developers of the plant. The Ruzizi III power dam will have a capacity of 147 MW and will provide power to an estimated 30 million people.
The development of the plant is estimated to cost between $650 and $700 million. The developers hope to obtain concessional loans from institutions such as the African Development Bank, the European Investment Bank, the European Union, the German Development Bank KfW, the French Development Agency or the World Bank.