March 8, 2016
On March 8, the Japan International Cooperation Agency (JICA) signed a grant agreement with the Government of the Republic of Rwanda to provide grant aid of up to 2.219 billion yen for the Project for Improvement of Substations and Distribution Network (Phase 2).
The project will construct and expand the electric power substations and associated power transmission and distribution facilities in Kigali, the capital city, to stabilize the power supply with higher efficiency.
With the economy growing at a rapid annual rate of approximately eight percent in recent years, Rwanda is unable to keep up with the demand for power which is growing more than 10 percent each year. The amount of power consumed in Kigali accounts for approximately 64 percent of the country’s total power consumption, but investment in the power distribution network has fallen short of what is needed for the power consumption. If that investment is not boosted to a suitable level, major substations in Kigali could be overloaded, and there are concerns that an unstable supply of power could become a major impediment to economic activities and people’s daily lives.
By constructing and expanding the electric power substations and power distribution network, this project will avoid the risk of a large-scale power outage, enable a stable supply of power, reduce power loss, and improve the electrification rate in Kigali, having a positive impact not only on the economy but also on related activities in education, welfare and health care.