An employee works on electric pylons at a power station in Greater Noida on the outskirts of New Delhi June 8, 2012. REUTERS/Parivartan Sharma/Files
An employee works on electric pylons at a power station in Greater Noida on the outskirts of New Delhi June 8, 2012. REUTERS/Parivartan Sharma/Files

Construction of a peat power plant was Tuesday launched in Gisagara district, southern Rwanda, expected to produce 80MW.

The project worth 350 million U.S. dollars is implemented by a Turkish coal company and investor, Hakan AS, together with an international power company, Quantum Power, with participation of a project development company, Themis.

The company is supported by Africa Finance Corporation (AFC), FINNFUND, India Exim Bank, PTA Bank, Development Bank of Rwanda (BRD) and the African Export Import Bank.

This is one of the most important and transformational energy projects in Africa, according to Rwandan officials.

The project is arguably the first of its kind in Africa (first peat power project in Africa) expected to increase 40 percent of national power capacity and bring more energy independence to the east African country.

It is meant to use 100 percent of domestic fuel, leading to reduction of imports.

The 80MW peat-fired power plant will be constructed alongside Akanyaru River, bordering Burundi under a Build Operate, Own and Transfer (BOOT) basis with a 26-year of Power Purchase Agreement, according to Rwanda’s ministry of infrastructure.

The construction is expected to be completed in 36 months. After the construction Quantum Power will operate the plant for 26 years and then transfer it to the government of Rwanda.

According to Rwanda’s Minister of Infrastructure, James Musoni, the project comes as another commendable step towards achieving the country’s economic goals and raising Rwandans economic and social status as replicated in the development strategies.

“This project might be the biggest power plant in the country by the time it comes on line. Together with other energy projects in pipeline, it’s expected that our installed capacity will significantly increase to more than 500MW in the next five years,” the minister said in a statement.

The project is estimated to create more than 1,500 jobs for locals in its first phase of construction, which will last three years. Enditem

Source: Xinhua/NewsGhana.com.gh