Rwanda: Accelerating Sustainable and Clean Energy Transformation (ASCENT) Rwanda (AIIB-000756)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Rwanda
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
Government of Rwanda
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Dec 26, 2023


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the AIIB, the objective of the project is to accelerate access to sustainable, reliable and clean energy for households, enterprises and public institutions in the Republic of Rwanda.

The Project will support the target of the Government of Rwanda (GOR) to achieve universal electricity access, in line with Rwanda's National Electrification Plan (NEP), targeting grid-based electrification for 65 percent of villages and off-grid electrification solutions for 35 percent. It will also strengthen Rwanda's efforts to enhance energy access for productive uses. In addition, the Project will support improved quality, reliability and efficiency of electricity service through upgrades in the electricity network and improvements in the operational performance of the energy utility. Finally, the Project will provide increased access to clean cooking solutions amongst large institutional users, in aid of the target of the Energy Sector Strategic Plan to reduce the number of households using traditional cooking fuels in line with GOR's target to reduce unsustainable biomass usage.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

As stated by the AIIB, the Project will have both positive and negative social impacts on people and communities in implementation areas. The key social risks and potential adverse impacts include: (i) increased risks related to sexual exploitation, abuse and harassment (SEA/SH) and spread of transmittable diseases among community members due to labor influx during construction works; (ii) SEA/SH among Project workers; (iii) discrimination in the hiring of local workers; (iv) loss of, or adverse impacts on livelihoods, due to restrictions on land use, and the need to establish right of way easements for HV, MV and LV lines and transformers' infrastructure; (v) risks of labor and working conditions in the supply chain. With respect to on-grid and off-grid electrification and clean cooking, there is a potential risk of exclusion of the vulnerable poor community members and women due to unaffordability of electricity to consumers.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The loan will be co-financed with the WB as lead co-financier.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated on the company's website, the Government of Rwanda has undertaken reforms in the energy and water sector which have been concretized by the separation of energy from water operations. The main objectives being; to have sector focused and efficient operations; attract more investment; improve planning and accountability; and increase access to services by the population to drive sector performance towards the targets envisaged in the EDPRS II and other national goals.

To this end, Government adopted the corporatization model as a vehicle to implement the required reforms. The law repealing EWSA Law of 97/2013 of January 31, 2014 paved the way for the creation of two corporate entities which were subsequently incorporated in July 2014 with 100% government shareholding.

The Rwanda Energy Group Limited (REG) and its two subsidiaries; The Energy Utility Corporation Limited (EUCL) and The Energy Development Corporation Limited (EDCL) entrusted with energy development and utility service delivery while the Water and Sanitation Corporation (WASAC) has the mandate to develop and operate water and sanitation infrastructure and deliver related services in the country.

The Rwanda Energy Group (REG) was incorporated to expand, maintain and operate the energy infrastructure in the Country through its two subsidiaries the Energy Utility Corporation Limited (EUCL) and the Energy Development Corporation Limited (EDCL). The object of creating these subsidiaries amongst others was to ensure focused attention to enhancing efficiency in utility operations on one hand and ensure more timely and cost efficient implementation of development projects on the other. Moreover the REG holding structure provides the overall coordination and ensures effective development of energy and investment plans

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Rwanda Energy Group Contractor Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AIIB Team Leaders:

Suzanne Shaw - Senior Infrastructure Economist
Email: suzanne.shaw@aiib.org

Tione Mtalimanja - Senior Investment Operations Specialist – Energy
Email: tione.mtjalimanja@aiib.org

World Bank Team Leader:

Norah Kipwola - Senior Energy Specialist
Email: nkipwola@worldbank.org

Implementing Agencies - Rwanda Energy Group (REG):

Website: https://www.reg.rw/index.php?id=2

Felix Gakuba - Managing Director
Email: fgakuba@edcl.reg.rw

Liliane Igihozo Uwera - Head of SPIU
Email: l.igihozo@brd.rw

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

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How it works