The government on Friday signed an agreement with an Indian firm, Punj Lloyd Ltd, worth $371 million to invest in a 100 MW peat power project.
According to the Minister of State for Energy and Water, Engineer Emma Francoise Isumbingabo, Punj Lloyd will construct, finance, maintain and operate a peat to power plant in North Akanyaru located in Bugesera district in Eastern Province.
Minister Isumbingabo said that the plant is expected to generate a gross of 100 MW once completed.
The feasibility study of the project will last six months.
"The government is continuously working towards attaining its goal of closing the gap of the 2017 energy target of 563 MW which will be achieved using various sources, peat being one of them. The agreement ensures that more electricity will be made available for Rwanda's economic development and helping realize EDPRS2 goals," Isumbingabo said.
In India, Punj Lloyd generates a total of 9100 MW from various energy sources including Geothermal, Nuclear and Coal projects.
RDB's CEO Clare Akamanzi said they have confidence in the capacity of the investors to meet their part of the bargain as agreed in the agreement. "Energy is a key component of economic development and partnering with experienced investors such as Punj Lloyd LTD is fundamental to further boosting Rwanda's GDP," observed Akamanzi.
She added that RDB continues to strengthen its deal negotiating capacity in order to attract such strategic partners as Punj Lloyd while at the same ensuring that the government and the investor obtain mutual gains.