Northern and Western provinces of Rwanda have been given priority in an African Development Bank (AfDB) project to improve access to electricity for households and priority public institutions in the country.

The Scaling up Energy Access Project approved on June 26 in Tunis is designed to support the Government’s strategic vision and its 2013-2018 Economic Development and Poverty Reduction Strategy (EDPRS-2).

AfDB Board of directors approved a $41 million (Rwf26 billion) combined loan and grant to ensure reliable electricity supply, and support scaling up of connections through the use of Compact Florence Lamps.

These connections come with two sockets and one lamp holder, targeting the most vulnerable households, a statement from the Bank said.

An estimated 25,438 rural households in Northern Province Rulindo and Gicumbi districts and Western Province (Ngororero, Rusizi, Nyamasheke, Nyabihu and Karongi districts), are expected to benefit from the project.

The project will also provide access to modern, reliable energy to 179 schools, 29 health centres, and 25 sector administration offices. Small-scale businesses and the few large commercial and industrial clients located in the area.

The project will increase installed capacity of electricity generation from the current 110.4 MW as the country enters the second phase of the electricity access rollout programme targeting 1.7 million households connections by 2017, from the current 360,000 connections.

The project is also expected to reduce Rwanda’s dependency on the expensive thermal power generating over 50 per cent of energy used in the country.

In the 2013/14 budget the electricity roll out programme was allocated Rwf 30.9 billion.

The total cost of the project is $45 million (Rwf25 billion), with the Rwanda Bank having to shoulder only $4 million (Rwf 2.5billion). The grant comes as a relief to a country whose doors to donor funds had been closed over alleged role in the conflict in eastern DR Congo.

The AfDB grant involves upgrading and rehabilitation of two substations in the Northern Province, the Gifurwe substation to 10MVA capacity and the Rulindo substation to 20MVA capacity; building about 464 kilometres of medium voltage (MV) and 710km of low-voltage (LV) distribution networks in both provinces.

AfDB together with Germany, Britain, the World Bank and the European Union are some of the donors who have reinstated financial support to Rwanda reviving hopes of achieving a fast economic growth to a country that has been rated best in ease of doing business in the WB Doing Business report in the region.

Read: Rwanda ranked fifth best globally for investment