Punj Lloyd Ltd, a publicly owned Indian based Company has signed the agreement with the government of Rwanda to develop and manage a peat power plant in North Akanyaru, in Bugesera District of Rwanda.
The pact signed on July 5, 2013 indicates Punj Lloyd’s plans to construct, finance, maintain and operate a peat to power plant, in the country of gross one hundred megawatt (100MW) with an estimated project value of $371m.
The objective of the agreement is to create understanding of the main roles and responsibilities of both the Investor and Government with respect to the Project and ensure the completion of the Feasibility Study within six months.
The Minister of State in Charge of Energy and Water, Eng. Emma Francoise Isumbingabo said that, “The Government of Rwanda is continuously working to attain its goal of closing the gap and attaining the 2017 energy target of 563MW.
She stated that the agreement will be achieved using various sources, peat being one of them.
She added that the Agreement ensures that more electricity will be made available for Rwanda’s economic development, helping realize the EDPRS II targets.
Speaking at the signing event, the Rwanda Development Board’s Acting Chief Executive Officer Ms. Clare Akamanzi maintained that: “Energy is a key component of economic development and partnering with experienced investors such as Punj Lloyd Ltd is fundamental to further boosting Rwanda’s GDP.
She said RDB continues to strengthen its deal negotiating capacity in order to attract such strategic partners as Punj Lloyd, while at the same time ensuring both government and the investor get a Win-Win deal.
Punj Lloyd Ltd boasts of EPC experience of 9,100MW of geothermal, nuclear and coal power projects in India.
The project comes at the time the of Rwanda government is investing over Frw 100 billion in energy projects this financial year in what is seen as scaled-up efforts to generate more electricity needed to sustain the country’s economic growth as part of the 2013/2014 national budget.
The Agreement follows the one signed between Rwanda and Jerusalem in June 2013 to provide an 8.5- megawatt solar oasis capable of providing 8 percent of the Rwanda’s energy supply.
Rwanda has about 100 MW of electricity for its 11 million people, which is derived from approximately 55% hydroelectric sources, 40% diesel and 5% methane gas.