Kigali, January 10, 2016 – The Government of Rwanda signed a Power Purchase Agreement (PPA) and a Concession Agreement with HAKAN MADENCILIK VE ELEKTRIK URETIM SAN. TIC. A.S. to design, build, finance, own, operate and transfer a 80MW Peat power plant to produce electricity from peat extracted from the South Akanyaru peat prospect in Southern Province, Gisagara District, Mamba Sector.
This was done in the efforts to increase the levels of energy production in Rwanda where the Government encourages the private sector to participate in the development of power plant projects that will generate energy by using different sources.
The overall objective of the signed agreements is to document the responsibilities of both the investor and the Government of Rwanda with respect to the project and to grant permission to the investor to operate.
After the agreement signing, the Minister of Infrastructure, James MUSONI, said that the agreement is in line with the government policy of enhancing power generation capacity countrywide. “The provision of electricity to all Rwandans is a priority for the Government. Such private initiatives and investments in the construction, development and maintenance of sustainable electricity generating plants provide great economic value.”
The Minister Infrastructure said that the project will be fully implemented by HAKAN. The Government of Rwanda will facilitate the Company by constructing roads for the power plant to be accessible and power transmission line that will ease power distribution. He also affirmed that HAKAN is a competitive company to implement the project successfully.
“HAKAN approached Government of Rwanda as an unsolicited bidder in 2011 with a proposal to build operate and transfer 80MW peat power plant. After assessing its potentials the government decided to sign a long term agreement with the Company” He said. The concession will last for 26 years; at the end of the concession, HAKAN will transfer the power plant back to the Government of Rwanda.
HAKAN is proud to invest in Rwanda as an easiest country to do business in Sub-Saharan Africa. He emphasized that they are excited to invest in this country due to available business facilities and pledged to beat the deadline of power production. KARASOY also vowed that the project will benefit Gisagara citizens through job opportunities and other social responsibility activities.
the project will benefit Gisagara citizens through job opportunities and other social responsibility activities.
The total investment of HAKAN to this project has a value of USD400 million. The construction period is 47 months from the effective date and the construction of the power plant will be complete and the power is expected to come on line at the end of March 2020.
Though connecting all households in the country is Governments’ goal, 48% of the households will be supplied by National grid by 2017/2018 and the remaining 22% would be electrified with off-grid solutions reaching a total of 70% of households electrified by June 2018.
Currently, Rwanda has installed electricity capacity of 185 MW and the target is to achieve 563 MW power generation by 2018.
Jean Bosco Mugiraneza, CEO - REG (right) and Maj. Eng Jean Claude Kalisa, MD – EUCL (left) signing the PP
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