{{KIGALI}} –{ It is in the mandate of Development Bank of Rwanda (BRD) to intervene in financing the priority sectors of the Rwandan economy especially those that are instrumental in the attainment of the EDPRS II and Vision 2020 development objectives. This Thursday, 20th November 2014, BRD signed a Rwf 8 billion long term loan agreement with Rwanda Mountain Tea (RMT) for the construction of a four Megawatts (4 MW) Hydro power plant (Giciye II).}
The loan facility will go towards the construction of the second phase of the Giciye II hydro power project with the total cost of the project amounting to Rwf 11.4 billion which will greatly contribute to the energy sector with an additional 4 MW.
The signing ceremony took place at the project’s site between the Bank’s Chief Executive Officer, Alex Kanyankole and the promoter Rwanda Mountain Tea, Gatera Egide.
In his remarks, Kanyankole said, “The energy sector requires joint efforts and we are proud to partner with an important investor such as Rwanda Mountain Tea. This is the second phase of the Giciye II hydro power to be constructed in a joint collaboration after the successful completion of Giciye I which is now connected to the national grid.”
The Rwandan government aims to increase power generation capacity to ensure that citizens access reliable and affordable energy to boost economic development enshrined in the second Economic Development and Poverty Reduction Strategy (EDPRS II) objectives.
Rwanda Mountain Tea faces a huge challenge of high power costs from the numerous Tea manufacturing plants it established hence the need to invest in the energy sector to significantly reduce operational costs as well as contribute to the development of the energy sector.
In 2012, the company received Rwf 1.5 billion financing for the construction of the 4 Mega Watts (Giciye I) in Nyabihu district which has boosted the Government efforts to meet the high shortage and irregularity of electrical power in Rwanda.
The project has significantly contributed to the emergence of huge investments in the social infrastructures in Nyabihu district as surrounding communities benefit from the consistent supply of electricity from Giciye I.
About Rwanda Mountain Tea
GICIYE II is a hydropower plant project also promoted by Rwanda Mountain Tea limited, aiming at developing the energy sector with a main focus on benefiting the local population and enterprises through supplying the generated power to the nearby national grid at an agreed price per unit.
Rwanda Mountain Tea is an important investor in Rwanda tea manufacturing industry with a strategic mission to invest in the energy sector to facilitate the Government of Rwanda in meeting the enormous energy deficit.
The company recently successfully completed the construction and launch of the first phase of the GICIYE I hydro power plant that has added 4 MW to the national grid. The construction works on the second phase GICIYE II which will contribute 4 MW are expected to start early next year 2015 and completed by 2016.
INSIDE GICIYE I
Leave a Reply