The Board of Directors of the African Development Bank Group has approved Euros 173.84 million for the Energy Sector Result-Based Financing program in Rwanda.
The AfDB backed program is set to modernize the electricity network, expand access to clean energy, and strengthen institutional capacity.
On the other hand, the Asian Infrastructure Investment Bank will provide an additional Euros 86.92 million, bringing the total program cost to Euros 260.76 million.
The Board approval marks the African Development Bank’s second result-based energy sector operation in Rwanda, following a USD 305 million program which was approved back in September 2018.
This indicates Rwanda’s preference for a performance-based financing approach in closing the country’s power infrastructure gaps.
Result-Based Financing (RBF II) program is anchored on Rwanda’s Energy Sector Strategic Plan (ESSP II 2024–2029) and aims to improve the quality of life of residents, drive economic growth, and reduce poverty through targeted investments in the energy sector.
Specifically, the RBF II program is focused on delivering results in three areas, including modernizing and extending the electricity network and systems; increasing access to on-grid and off-grid electricity and clean cooking technologies; and strengthening technical and institutional capacity.
Under the initiative, more than 200,000 households and 850 productive use customers in Rwanda will be connected to the national grid.
The program will also add 50,000 new electricity connections through off-grid solutions; provide clean cooking devices to 100,000 households and 310 public institutions.
There are also plans to install street lighting on 200 kilometers of roads in secondary cities across Rwanda.
The Result-Based Financing program is described to be a key deliverable under the Bank’s High-5 priority areas of “Light up and Power Africa” and “Improve the Quality of Life of the People of Africa.”
Additionally, the program will contribute to delivering on the Mission 300 Initiative of the African Development Bank and the World Bank to connect 300 million Africans to electricity by 2030.