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.”
Issued by: Ingiahedi Mduma
Spokesperson
Ministry of Finance
Washington DC
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