ELECTRICITY ACCESS RWANDA

Promoter – Financial Intermediary

ENERGY DEVELOPMENT CORPORATION LTD (EDCL)

Location

• Rwanda

Description

The project is an investment programme of electricity distribution schemes in Rwanda consisting of the financing of low- and medium-voltage networks and rehabilitation and upgrade of distribution networks. The new network investments will give access to electricity to approximately 190 000 new connections and the rehabilitation and upgrade of distribution networks will contribute to the increase of capacity, improvement of grid reliability and enhancement of operational efficiency.

Objectives

This operation concerns the project co-financed by the African Development Bank (AfDB) and the EIB for a total investment cost of EUR 256 m aiming at increasing access to electricity in rural areas of Rwanda, therefore having an important social and development impact as well as improving the quality of the energy supply. By addressing the lack of access to modern and reliable energy services, the project aims at supporting economic growth and promoting social development across Rwanda. It therefore falls under the scope of the development goals of the 2014-2020 External Lending Mandate for sub-Saharan Africa, the Caribbean and the Pacific (ACP) countries and it is in line with the EIB's priority objectives on competitive and secure energy.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 100 million

Total cost (Approximate amount)

EUR 256 million

Environmental aspects

If located in the EU, the project would fall neither under Annex I nor Annex II of the EIA Directive. The activities of the project have the potential for some environmental and social adverse impacts, including land degradation and soil erosion, vegetation clearance, electromagnetic fields and disturbance during construction. The project activities will involve temporary loss of access to land or property due to the construction works within the right of way as well as crop and trees destruction; physical displacement of people is not expected. The project may have also have workers' health and safety-related impacts. Other social impacts related to the project may include HIV/AIDS and other communicable diseases escalation, conflict with local communities, sexual exploitation and abuse, child labour and gender-based violence, etc. Environmental and Social Management Framework (ESMF) and Resettlement Policy Framework (RPF) have been prepared for the extensions of the MV and LV networks, whose exact locations and routes are not yet known. According to national legislation, the construction of medium-voltage lines will be subject to Environmental Impact Assessments (EIA) and Resettlement Action Plans (RAP) will be prepared at Province level to address and mitigate the environmental and social impacts of the project. Each scheme will prepare a site-specific Environmental and Social Management Plan (ESMP) with mitigation measures based on the scheme site. A stakeholder engagement plan has been devised that includes disclosure of the ESMF as well as the EIAs and the ESMPs. For the RPF, public consultation and stakeholder engagement has already started and further consultations are planned during the preparation and implementation of RAPs. The institutional arrangement for the environmental and social safeguards implementation will include EDCL and other relevant institutions, including regulatory bodies, at national, province and district level.

Procurement

The project is in the public sector. The Bank will require the Promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.

Status

Signed - 23/12/2020