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COMMERCIAL AGREEMENT BETWEEN EAST AFRICA COUNTRIES

Written By Unknown on Jumamosi, 21 Septemba 2013 | 03:30



By. Prosper Kwigize

Tanzania

September 21, 2013


About forty years ago after planning of usage Kagera liver water for producing power in east Africa, three countries, namely Tanzania, Rwanda and Burundi have signed a MoU whereby The Minister for Energy and Minerals, Prof Sospeter Muhongo, Rwandan Minister for Infrastructure, Prof Silas Rwakabamba and Burundi Minister for Energy and Mines, Mr Manilakiza Cone, on Tuesday signed the contract which would help implementation of the Regional Rusumo Falls Hydro-electric project to cost 340 million US dollars.

During the event of signing the Rusumo agreements the ministers said that The objective of the Regional Rusumo Falls Hydroelectric Project is to increase power supply of electricity to the national grids of Burundi, Rwanda, and Tanzania and strengthening their economic ties.

It said that when completed, the Regional Rusumo Falls Hydroelectric Project will have an installed capacity of 80 MW (Run of River Scheme at 1320masl) to be shared among Burundi, Rwanda and Tanzania.

Commissioning of the project is expected to take place in 2017. A 90 MW reservoir design had been envisaged earlier, but was abandoned in favour of an 80 MW design with a smaller environmental impact and an estimated cost of US$340 million as opposed to US$400 million for the bigger project. The World Bank announced on the 6th of August 2013 that it has approved the funding needed for the project.

The power generated will be shared equally between the countries of Burundi, Rwanda and Tanzania. Power will be evacuated from the power generation plant via 220 kV transmission lines to transmission stations in Gitega in Burundi, a distance of 158 kilometres, from Rusumo to Kigali in Rwanda, a distance of 115 kilometres and to Nyakanazi in Tanzania, a distance of 98 kilometres whereby the Tanzania regions especially Kagera, Geita and Kigoma will be benefit from the power from Rusumo.

Prof Muhongo, has urged member countries under the East African Community (EAC) member states to speed up implementation of delayed projects for mutual benefit of their citizens.

Minister Muhongo made the call while opening the 6th Energy Ministers’ Meeting held in Bukoba Municipality. He noted that the Rusumo project had been planned for almost 40 years since 1974,

Professor Muhongo explained that the Implementation was delayed due to various obstacles including lack of funds inefficiency, lack of professionalism, incompetence and corruption, he said. “As we sign the agreement, we should aim at quality and timely delivery of services. We must also move from rhetoric to action. Many projects were in the books but now it is time to start implementation for the benefit of our people,” he said.

Minister Muhongo said many African countries ranked far below in terms of power consumption, something which must be addressed immediately. Citing data, Minister Muhongo said while South Africa was a leading power consumer in the African continent with 4,347 KW per hour, other countries had very low power consumption per person in units.

They include Kenya (133 units), Tanzania (79 units), Uganda (55 units), Burundi (26 units) wile Rwanda had 30 units. He noted that the US was the leading giant in power consumption with 12,000 units per person. Minister Muhongo thanked the World Bank (WB) which agreed to finance the Rusumo hydro-power project with initial loan of 340 million US dollars.

The African Development Bank (AFDB) had also shown commitment to give a loan amounting to 72 million US dollars. He urged Rwanda, Burundi and Tanzania to use the money wisely because the taxpayers would repay the loan at a later date. Rwandan Minister for Infrastructure, Professor Silas Rwakabamba, noted that the signing of the agreement was an historic event, which would assure the three countries of power connectivity for economic development.

He also said it was not the policy of Kigali government to have monopoly in the Rusumo project, but rather individuals to be employed under the project would depend on qualification and competence. Burundi Minister for Energy and Mines, Mr Manilakiza Cone, also hailed the signing of the agreement. He noted that enhancing of power generation would advance goals of integration not only among EAC member countries but in the whole SADC region.

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