The construction of transmission lines to evacuate power from the Rusumo Falls hydroelectric plant, on the Rwanda-Tanzania border, could be thrown into jeopardy after two key financiers pulled out.
Barely three months after the World Bank committed $340-million to finance the Rusumo power plant, which will supply electricity to Rwanda, Burundi and Tanzania, the French Development Agency (AFD) and the Germany Development Agency (KfW) have withdrawn financing of the transmission lines.
The two agencies decided to pull out of the project after the three governments failed to provide a conclusive environmental- and social-impact assessment that also addresses how affected families will be compensated.
The AFD, KfW and the World Bank were to be the key financiers of the transmission lines, covering a distance of 372 km that will evacuate power from the plant to the respective countries.
To ensure the project goes ahead, the three countries have approached the African Development Bank to provide the $40-million financing shortfall.
Rusumo is a regional power project whose total cost is pegged at $468-million. The plant will generate 80 MW when it is completed in 2017.
The three 220 kV transmission lines will be needed to evacuate power from the power station to Gitega, in Burundi, Kigali, in Rwanda, and Nyakanazi, in Tanzania.
The project will also include the construction of substations to enable seamless interconnection with national grids in the three neighbouring countries.