37 million US dollars. This is the amount allocated by the African Development Bank and the European Union to finance the Rubirizi power station in Burundi. It is part of the Kamanyola-Bujumbura interconnection project. Scheduled for completion in December 2024, the substation will be the injection point for energy generated by the Ruzizi III regional hydroelectric plant, which is also benefiting from Bank financing, in an ADB press release.
This 160-megavolt facility should enhance the reliability and stability of the power grid in Bujumbura, the country’s economic capital. It will also be the injection point for energy produced by the Ruzizi regional hydroelectric plant. “We know that electricity is essential today, especially for food, cooking and leisure. It’s clear that this power plant will bring benefits, and we also know that giving people access to electricity also generates investment, particularly in terms of employment, because when there’s electricity, there’s the possibility of being able to work in a certain way, particularly in the steel industry“, says Guinean economist Alseny Thiam.
The members of the delegation, whit the Managing Director of the Burundi Water , Electricity Production and Distribution Authority, Lieutenant-Colonel Jean Albert Manigomba, and project coordinator Ezechiel Bagayayutunze, were able to assess the progress of work in the field, as well as the quality of cooperation between Burundi and the African financial institution in the implementation of infrastructure essential to the country’s development. The Minister of Finance expressed his satisfaction with the quality and progress of the work. Among other things, he urged the companies and teams of the Water , Electricity Production and Distribution Authority to make their efforts to meet the deadlines set for completion of the work.
In Kabezi on August 9, 2024, as part of a visit to ADB-financed electrification projects in Rubirizi and Kabezi, a delegation from the Burundian government and the ADB Group visited the electrification work on phase 1 of the energy access project, which covers 36 localities in 11 provinces of Burundi. The project will connect 25,000 households in the beneficiary towns and villages. “This initiative by the African Development Bank is to be applauded because, as I was saying, energy is the key to revitalizing development today. So I think that if the development bank invests more and more in access to electricity, it will help to improve living conditions for populations, and it will also propose solutions, particularly economic ones,” adds Alseny Thiam.
Opportunities for investors
This new power station will strengthen Burundi’s energy infrastructure, which is essential for sustaining economic growth. Investors may be interested in related projects such as the expansion of the electricity distribution network, the modernization of existing infrastructure, or the installation of more efficient energy systems. Improved power generation and distribution will attract investment in sectors such as manufacturing, agriculture and information technology. Reliable access to energy will enable these sectors to grow and modernize, opening up opportunities for investors in business start-ups and industrial development. “With the construction of new energy infrastructures, there is an opportunity to integrate more renewable energies into Burundi’s energy mix. Investors interested in solar, hydro or wind power can find partnerships and investment opportunities for clean energy projects“, says Alseny Thiam.
The ADB plays a crucial role in the development of electricity infrastructure in Burundi. As of July 31, 2024, the Bank’s commitment in the energy sector stood at US$147 million, dedicated to the financing of five projects. Of these, two are national in scope (the Jiji and Mulembwe hydroelectric power plants project, and Phase 1 of the energy access project) and three are regional (the Kamanyola-Bujumbura interconnection project, the Kigoma-Gitega interconnection project, and the Ruzizi III regional hydroelectric power plant project).
