Enhancing Energy Reliability, Growth, Investments and Sustainable Electrification in Rwanda (WB-P516633)

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
  • World Bank (WB)
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
A
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."
Voting Date
Feb 16, 2027
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
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
  • Hydropower
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.
Project Cost (USD)
$ 125.00 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.
Bank Documents
Primary Source

Original disclosure @ WB website

Updated in EWS Oct 3, 2026

Disclosed by Bank Sep 25, 2026

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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.

As stated by the World Bank, the project development objective is to improve the reliability and security of electricity supply and and enhance private sector participation in energy generation in Rwanda. 

  • Component 1: Expansion of Solar PV Capacity through Private Sector Participation. This component aims to support development of 100 MW of utility-scale solar PV capacity through competitive procurement of independent power producers (IPP). Two subcomponents are included:
    • Subcomponent 1.1—Payment and/or Loan Guarantees: This subcomponent proposes to provide payment and/or loan guarantees to de-risk private investment in 100 MW of solar IPPs. The guarantees will address EUCL's offtaker risk, with a portfolio-based structure covering multiple IPPs, over and above the initial 100 MW, to ensure competitive tension and lender interest.
    • Subcomponent 1.2—Land Acquisition and Resettlement Financing: IDA resources could be deployed towards financing land acquisition and associated resettlement costs for two designated 50 MW solar sites, mitigating a significant risk to solar PV deployment by the private sector.
  • Component 2: Development of a Utility-Scale Battery Energy Storage System. This component will finance the design, procurement, installation, and commissioning of utility-scale BESS which will be built, owned, and operated by EUCL. The BESS will enhance the grid's ability to absorb and dispatch intermittent solar generation, provide ancillary services (frequency regulation, voltage support), and reduce reliance on expensive peaking thermal plants. The BESS is expected to be co-located with one of the solar sites to be supported by Component 1.
  • Component 3: Rehabilitation of the Ntaruka Hydropower Plant. The Ntaruka Hydropower Plant (11.5 MW) is one of Rwanda's oldest and most strategically important generation assets. Years of deferred maintenance and operational wear have significantly reduced its effective capacity. This component will finance the rehabilitation of civil structures, electromechanical equipment, and ancillary systems to restore the plant to its full nameplate capacity of 11.5 MW.
  • Component 4: Strengthening Institutional Capacity, Implementation Support, and Technical Assistance. This component ensures effective project implementation and lays the groundwork for Rwanda's longer-term energy sector development:
    • Subcomponent 4.1—Implementation Support and Capacity Building: Financing for the Project Implementation Unit (PIU) at EDCL, including staffing, project management, procurement, financial management, environmental and social safeguards, and stakeholder engagement. Capacity building support will be provided to EUCL, RURA, RDB, MININFRA, and other sector entities on areas including BESS operation, tariff regulation, sector planning, and PPP structuring.
    • Subcomponent 4.2—Technical Studies and Pipeline Development: Funding for feasibility studies, resource assessments, and pre-investment technical work for a pipeline of future generation projects across Rwanda's energy mix, including solar, hydropower, geothermal, gas and nuclear. This subcomponent will inform the design of subsequent projects in the SoP.

The implementing agency will be Energy Development Corporation Limited, a subsidiary of the Rwanda Energy Group.

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

World Bank Team Leader:

Laurencia Karimi Njagi - Senior Energy Specialist

No contacts provided at the time of disclosure.

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint

How it works

How it works