The deal was inked by the Rwandan minister of finance Amb. Claver Gatete and the World Bank representative to Rwanda Yasser El-Gammal in Kigali, capital city of Rwanda.
The funding which is in form of a concessional loan is expected to enable fiscally sustainable expansion of electricity services in the central African country. It also aimed to improve the operational efficiency, affordability, and accountability of electricity service, according to the Ministry of finance as Xinhua reported.
The support is part of the World Bank’s three year Development Policy Operation (DPO) series project worth 325 million dollars, a continuation of the World Bank’s current financing in the energy sector in Rwanda worth 386.7 million dollars, according to the lender.
Monday’s funding will be followed by two other series, each worth 100 million dollars, said the bank.
According to the ministry’s statement, the DPO will specifically strengthen planning capacity for least-cost access expansion, introduce improved accountability and transparency in implementing electrification programs, among others.
Speaking after the signing event, Gatete said the Development Policy Operation would help Rwanda achieve sustainable development of the power sector.
The program supported by the DPO series is based on a clear set of reforms that will help Rwanda lay the groundwork for successful energy sector development during the implementation of the National Strategy for Transformation for the period of 2017 to 2024, he said.
The proposed operation supports the Rwandan government in taking many of reform measures, initiated in previous World Bank operations, forward in a structured, pragmatic and transformative manner, Yasser El-Gammal said.
Rwanda targets to increase electricity production both on and off grid to ensure that all households have electricity by 2024, from the current 22 percent, Rwandan Prime Minister Edouard told the parliament in September when presenting the government’s development strategy up to 2024.