The Africa Finance Corp. (AFC) is helping Rwanda bring a renewable energy project to fruition, a peat-to-power project. The lending institution is the lead arranger for a $350 million deal to finance the 80-MW project.
AFC, as the mandated lead arranger for the project debt, successfully arranged total senior debt facilities of $245 million, contributing $75 million in loans and providing an underwriting commitment of $35 million.
Ato Gyasi, senior director-Investment at AFC told Alternative Energy Africa at the recently held Powering Africa Summit, that the Rwandan project was a “unique” project for AFC to be involved in.
The power plant, which is expected to increase installed capacity in Rwanda by 40%, will utilize the country’s significant peat reserves to improve the national installed generation capacity. The plant is being constructed in the Mamba Sector of Gisagara District, one of the most remote areas in Rwanda, and is expected to be completed within three years.
The peat-to-power project will help Rwanda meet its self-imposed energy targets. James Musoni, Rwanda’s Minister of Infrastructure, speaking to attendees at the Powering Africa Summit, expressed his government’s ambitions surpassing a long held goal providing access to power for all its citizens by 2030. According to Musoni, Rwanda wants to knock a decade off of that target and has set 2020 as its target to light up the country fully. Musoni said that “with cooperation between all stakeholders this goal can be met.”