Rwanda has completed plans to construct a 30MW thermal plant to cater for its rising demand in electricity.
Government has made development of the energy sector its second priority after construction of roads, railway lines and bridges.
“We are now looking at the construction of micro-hydroelectric stations, renewable energy industries and exploitation of methane gas for production of electricity to supplement the country’s energy deficit,” reads part of the statement from the ministry of finance, illustrating its priorities under the 2007/08 national budget.
It says that the electrification master plan for Rwanda will also lead to installation of gas thermal station of 30MW in Kibuye district and another one in Gisenyi.
“This will be in addition to the hydroelectric station at Nyabarongo and Rukarara.as well as a thermal station of 10MW for emergency in Kigali city, whose construction is set to kick off soon”, further reads the statement.
Under the existent programme, several existent power stations such as one in Gisenyi and the other in Muhira will be renovated in addition to oil tanks at Bigogwe.
KAMPALA-KIGALI PIPLINE
Since the 2007 budget targets the improvement in the supply of oil to Rwanda, the government has also thrown its weight behind construction of a petroleum pipeline from Kampala in neighboring Uganda to Kigali.
“Oil products represent 5% of consumed energy at the national level and the pipeline will impact transport costs. In turn, it will have a positive bearing on general commodity prices and inflation,” further reads the statement.
Notable to note is that 80% of all Rwanda oil products are used in the transport sector.
The access to improved transport and communication facilities, as well as revamping of energy sector within the country especially in rural areas, can have direct impact on poverty reduction through increasing non-agriculture employment opportunities. Its estimated that with the increase in energy production, Rwanda could create about 1.4 million jobs by 2020.
VISION 2020 LAUNCHED
The country’s economy grew by 7%in 2007 compared to 6%in the previous year.
This is reportedly due to improved agricultural production and rise in infra-structure development.
Rwanda saw its inflation rate in the second quarter of 2007 fall to 8% from 10% that was recorded in the first quarter. This was attributed to improved agricultural output and monetary management by the central bank.
The country has also launched an ambitious plan christened “Vision 20202”,under which it seeks to transform itself into a middle income economy.
It hopes to do this by increasing annual per capita income from US$260 to US%900.and slash the high poverty levels existent in the country today.
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