Rwanda’s universal energy access program (RUEAP), which is a part of the National Strategy for Transformation (NST1) 2017–2024 aims to improve access to energy and efficiency of energy service delivery to households, businesses, and public institutions in the East African country, is set to receive a financial boost.
This is as a result of a US$ 66.2M loan agreement signed by the Government of Rwanda and that of the Republic of Korea. The loan facility is concessional in nature and it will be repaid in 40 years timeframe including a grace period of 15 years, at the interest rate of 0.01 percent annually.
Remarks on the signing of the Loan facility
Speaking after the signing ceremony, Uzziel Ndagijimana, the Rwandan Minister of Finance and Economic Planning said that the support was timely and thanked the Government of the Republic of Korea for the continued support and collaboration in many areas of the East African country’s economy and most importantly agriculture, education, digitalization, water and sanitation sectors.
In his remarks, Ambassador of the Republic of Korea in Rwanda, His Excellency Jin-weon CHAE, stressed his country’s commitment to partnering with the East African country saying, “Korea will continue its close partnership with Rwanda in its journey towards sustainable development. I believe this project will provide a solid electricity infrastructure, which is vital for industrial development and improvements in the quality of the life of Rwandans.”
The work that will be financed by this loan facility
According to the Rwandan finance ministry, the loan facility will support the grid extension works of Gasogi, Mamba, Nyabihu, Rwabusoro, and Nyabarongo power sub-stations as well as connecting associated transmission lines and line bays.
It is expected that once complete, the project will reinforce the national power system by expanding the transmission grid and provide a stable power supply.