The World Bank’s Board of Executive Directors today approved US$340 million for the Regional Rusumo Falls Hydroelectric Project which aims to benefit people in Tanzania, Burundi and Rwanda. This project is the first operation under the World Bank Group Great Lakes Regional Initiative inaugurated by the World Bank Group President Jim Yong Kim during his historic joint visit with UN Secretary General Ban Ki-moon in May 2013.
The World Bank financing of a total US$340 million – US$113.30 million to the countries of Tanzania, Burundi and Rwanda comes from the International Development Association (IDA).
IDA is one of the largest sources of assistance for the world's 82 poorest countries, 40 of which are in Africa. Resources from IDA bring positive change for 1.8 billion people living on less than $2 a day. Between 2003 and 2013, IDA provided $256 billion in financing for 3,787 projects in Sub-Saharan Africa. IDA established in 1960, helps the world's poorest countries by providing zero-interest financing and grants for projects and programs that boost economic growth, reduce poverty, and improve poor people's lives.
Colin Bruce, Director of Strategy, Operations and Regional Integration, said that,” This landmark project will have transformational impact, bringing lower-cost energy to homes, businesses, and clinics in Burundi, Rwanda and Tanzania.”
All three countries will benefit from job created by construction and installation activity associated with the power plant. By choosing a run-of-the-river option to reduce social and environmental impacts, the participating countries have demonstrated careful and responsible decision-making. Lack of access to electricity is a defining constraint in the region. Only four percent of the population in Burundi has access to electricity, corresponding numbers for Rwanda and Tanzania are 13 and 15 percent respectively.
“By connecting grids, people from Tanzania will benefit a lot because the project will help to catalyze growth and reduce the cost of energy and also will reduce power crisis in Tanzania.” says Dr. Agustiao Willium Mgimwa, Minister for finance in Tanzania.
Jamal Saghir, World Bank Director for Sustainable Development in the African Region said that “The Rusumo Falls Hydroelectric Project takes a regional approach to tackling Sub-Saharan Africa’s power crisis, providing low-cost, clean, renewable energy to people in Tanzania, Burundi, Rwanda. He continued saying that “The new power plant signals the Bank’s commitment to keeping the lights on across the African continent, necessary for achieving growth, ending poverty and boosting shared prosperity in the region.”
“The Regional Rusumo Falls Hydroelectric Project provides fresh opportunity to unlock energy potential in the Great Lakes region, while safeguarding the environment,” says Paul Baringanire, World Bank Team Leader for the project and Senior Energy Specialist. “We look forward to speedy implementation so that the idea of sharing natural resources for mutual benefits becomes a reality and helps to build peace, stability and economic opportunity for all communities in the Great Lakes region.”
Mgimwa concluded by saying that “Today’s signing ceremony of US$340 million for Rusumo Falls Hydroelectric Project which approved by the World Bank Group’s, will increase power generation and interconnectivity to take advantage of low-cost and renewable sources of hydropower and shared infrastructure development. Will also demonstrate mutual benefits attainable by sharing of river waters as a catalyst for greater economic integration and help to lower costs, enable joint management of the hydropower generation and transmission system.”
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