ADF Supports Nile Basin Power Project
Tunis, 27 October 2006 – The Board of Directors of the African Development Fund (ADF), the concessional window of the African Development Bank (AfDB) Group, on Friday in Tunis, approved a grant of 2.57 million Units of Account (UA*), equivalent to US$ 3.79 million to finance a study on power transmission lines in the Rusumo Falls hydropower station.
The study will examine the technical, financial, economic, social and environmental feasibility of projects to transmit power generated by the Rusumo Falls hydropower station to electrical grids in Burundi, Rwanda and Tanzania as well as the feasibility of a rural electrification programme in the Kagera basin area along the corridors of the power transmission lines. Overall, the study is expected to promote regional economic development and improve the quality of life of the people through greater access to electrical energy at reasonable prices.
The ADF’s intervention will involve the study of three power transmission lines and rural electrification along the line corridors.
The power transmission lines are the Rusumo-Gitega (Burundi) line (200 km); the Rusumo-Birembo (Rwanda) line (150 km) and the Rusumo- Biharamulo (Tanzania) line (100 km).
It will be conducted in five phases:
- The pre-feasibility phase will assess the feasibility of the envisaged power transmission lines, with special attention on the possibilities of electrifying localities situated along the line corridors. Several options of line layout and voltage level will be considered before the selection of layouts and voltage level to be studied in detail.
- The feasibility phase will be devoted to technical, economic, financial, social and environmental feasibility studies of the three power transmission lines and rural electrification. The results of the pre-feasibility studies will be improved and the technical choices will be optimized. Special attention will be paid to the consideration of opportunities for the productive use of electricity and development of income-generating activities in rural areas ;
- The third phase will review and summarize the environmental and social impact assessments (ESIA) of the components of the overall study financed by the ADF and the Niger Basin Trust Fund (NBTF).
- The fourth phase will prepare a summary of financial and economic analyses (FEA) of the two components of the entire study.
- The fifth phase will deal with the final design studies and the preparation of bidding documents for the Sources of Finance and Expenditure Schedule.
The study will be jointly financed by the ADF and Nile Basin Initiative (NBI.) The ADF grant will finance the entire costs in foreign exchange and part of the costs in local currency representing 89.93% of the total cost. The NBI will cover the remaining 10.07%.
* 1 UA = 1.47637 US$ as at 27/10/2006