WASHINGTON, August 6,
2013 – The
World Bank’s Board of Executive Directors today approved US$340 million for the
Regional Rusumo Falls Hydroelectric Project which aims to benefit 62 million
people in Burundi, Rwanda and Tanzania.
This project is the first operation under the World Bank Group Great
Lakes Regional Initiative inaugurated by World
Bank Group President Jim Yong Kim during his historic joint visit with UN Secretary General Ban Ki-moon in May
2013.
The
overall project cost is US$468.60 million and its eventual 80 megawatt
generation capacity will boost reliable power supply to the electricity grids
of Burundi, Rwanda and Tanzania, reduce electricity costs, promote renewable
power, spur job-led economic development and pave the way for more dynamic
regional cooperation, peace and stability among the countries of the Nile
Equatorial Lakes (NEL) sub-region in east Africa.
The
World Bank financing of a total US$340 million – US$113.30 million to each of
the governments of Burundi, Rwanda and Tanzania comes from the International
Development Association, * the
World Bank’s fund for the poorest.*
World Bank’s fund for the poorest.*
“This landmark project will have
transformational impact, bringing lower-cost energy to homes, businesses, and
clinics in Burundi, Rwanda and Tanzania,” says Colin Bruce, Director, Strategy, Operations and Regional Integration.
“By connecting grids, people and
environmentally sensitive solutions, the project will help to catalyze growth
and to encourage peace and stability in the sub-region.”
Lack
of access to electricity is a defining constraint in the region. Only four percent
of the population in Burundi has access to electricity, corresponding numbers
for Rwanda and Tanzania are 13 and 15 percent respectively. All three countries will benefit from job
created by construction and installation activity associated with the power
plant. By choosing a run-of-the-river
option to reduce social and environmental impacts, the participating
governments have demonstrated careful and responsible decision-making.
“The Rusumo Falls Hydroelectric Project takes
a regional approach to tackling Sub-Saharan Africa’s power crisis, providing
low-cost, clean, renewable energy to people in Burundi, Rwanda and Tanzania,”
says Jamal Saghir, World Bank Director
for Sustainable Development in the Africa Region. “The new power plant signals the Bank’s commitment to keeping the lights
on across the African continent, necessary for achieving growth, ending poverty
and boosting shared prosperity in the region.”
Contribution to
Regional Integration and Excellence
While
other parts of Sub-Saharan Africa are experiencing high growth rates, countries
of the Great Lakes sub-region have had extremely high levels of poverty and
very low levels of key services such as access to electricity. Yields from
agriculture also are typically quite low.
Today’s approval of the Regional Rusumo Falls Hydroelectric Project is
anchored in the World Bank Group’s development approach to the region pegged to
increase power generation and interconnectivity to take advantage of low-cost
and renewable sources of hydropower and shared infrastructure development. The project will strengthen the capacity of
the Nile Equatorial Lakes Subsidiary Action Program (NELSAP) and its emergence
as a regional center of excellence.
The
project’s regional approach to infrastructure development will help to lower
costs, enable joint management of the hydropower generation and transmission
system, and demonstrate mutual benefits attainable by sharing of river waters
as a catalyst for greater economic integration.
“The Regional Rusumo Falls Hydroelectric
Project provides a fresh opportunity to unlock energy potential in the Great
Lakes region, while safeguarding the environment,” says Paul Baringanire, World Bank Team Leader
for the project and Senior Energy Specialist. “We
look forward to speedy implementation so that the idea of sharing natural
resources for mutual benefits becomes a reality and helps to build peace,
stability and economic opportunity for all communities in the Great Lakes
region.”
In
2011, World Bank helped to provide electricity to an additional 1.4 million
people in African countries; construct and repair some 6,640 kilometers of
roads; and improved water supplies for more than 8 million people.
*
The World Bank's International Development Association (IDA), established in
1960, helps the world's poorest countries by providing zero-interest financing
and grants for projects and programs that boost economic growth, reduce
poverty, and improve poor people's lives. IDA is one of the largest sources of
assistance for the world's 82 poorest countries, 40 of which are in Africa.
Resources from IDA bring positive change for 1.8 billion people living on less
than $2 a day. Between 2003 and 2013, IDA provided $256 billion in financing
for 3,787 projects in Sub-Saharan Africa.
Contacts:
In
Bujumbura: Marie Claire Nzeyimana (257) 2220-6247,mnzeyimana@worldbank.org
In
Kigali: Rogers Kayihura (250) 252-591-303
rkayihura@worldbank.org
In
Dar es Salaam: Loy Nabeta ( 255) 22 216 3246
lnabeta@worldbank.org
In
Washington: Phillip Jeremy Hay (202)473-1796, phay@worldbank.org; Sarwat
Hussain (202) 473-4967 Shussain@worldbank.org
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