Africa's CEPGL Agrees to Begin $500 Million Rusizi III Hydropower Initiative

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Researched by Industrial Info Resources (Sugar Land, Texas)--All members of Africa's Economic Community of the Great Lakes Countries (CEPGL) reached an agreement with development partners to commence the establishment phase of the planned $500 million Rusizi III hydropower plant on the Rusizi River, which acts as a natural border between the upstream river flow of the Democratic Republic of Congo (DRC) and Rwanda, and the downstream river flow of DRC and Burundi.

DRC is in central Africa, Burundi is in the Great Lakes region of east Africa, and Rwanda is in eastern-central Africa. The power plant will be responsible for the addition of nearly 145 megawatts (MW) to the electricity grid network sported by the three countries, which are the three member states comprising the CEPGL.

At a recent two-day meeting organized by Energy for Great Lakes Countries (EGL), CEPGL's energy utility, partner nations and the project's primary financier, the European Union (EU), discussed ways to launch the project. The meeting followed the recently concluded feasibility studies for the same.

The project partners for the hydropower undertaking include representatives from both the public and private sectors, including those of the three member countries, the CEPGL Permanent Secretary, the sub-regional organizations belonging to the energy arena, financiers and national power utilities among others. All individuals at the meeting reviewed the findings of the studies and assessments performed by consultancy firm Fichtner Consulting Engineers (Stuttgart, Germany) and a consortium called SOFRECO-MERCADOS RSW.

Although the EU is the major financial contributor to the project, the three member countries will make individual contributions. In addition, privately owned companies will commit funds as per arrangements under the public-private partnerships scheme.

During the meeting, the members emphasized that in addition to the investments in the Rusizi III hydropower project, it is also necessary to invest in transmission lines and substations for the effective export of the generated energy to the electricity networks belonging to the three member countries.

The meeting also saw the members agreeing to the necessity of Rwanda and DRC continuing their dialogues for a "basin treaty" to safeguard the waters of Lake Kivu from exploitation of any kind.

"All studies have been completed, and if ground work starts in 2011, the plant will be ready in five years, by 2016," said Michel Arrion, the head of the EU Delegation in Rwanda. "Countries will take an equal share of the power output--that is, a third of the electricity produced--and once complete, the dam will be managed by a private company."

Arrion added: "The EU is committed to funding the project from start--that is, the feasibility studies through implementation, putting in place the required infrastructure, as well as high-voltage wires to carry electricity to each country's central power point. Countries will take care of the networking costs and any other negotiations that may follow."

The CEPGL, a sub-regional organization, was first conceived when the Agreement of Ginseyi was signed in Rwanda on September 20, 1976. Its main aim is to propagate economic collaboration, as well as amalgamation in the region comprising its three member countries. The CEPGL controls the Bank of Development of the States of the Great Lakes, the Comité Permanent Inter-Compagnies and the International Society for Electricity in the Great Lakes Region, among other organizations.

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