Government signs €220m Hakan mining energy deal

rwanda-map11The Government of Rwanda has today signed a Power Purchase Guarantee and a Concession Agreement with Hakan Mining and Generation Industry and Trade Inc. to develop and manage a peat extraction and electricity generating plant, in a ceremony held at Kigali Serena Hotel.

According to the agreements, Hakan Mining and Generation Industry and Trade Inc. plans to extract, construct and operate a peat power plant at South Akanyaru in Gisagara District, Southern Province of gross one hundred megawatts (100MW) with a an estimated project value of Euros 220m. The construction will commence within 12-15 months.

The overall objective of the agreements is to document understanding of the main roles and responsibilities of both the investor and Government with respect to the Project and to grant permission to the investor to operate.

The Minister of State in Charge of Energy and Water, Eng. Emma Francoise Isumbingabo said that, “The provision of electricity to all Rwandans is a priority for the government. Such private initiatives and investments in the construction, development and maintenance of sustainable electricity generating plants provide great economic value.”

A peat master plan, prepared by Ekono consultants, indicated that Rwanda has estimated reserves of 155 million tons of dry peat spread over an area of about 50,000 hectares and 77% of peat reserves are near Akanyaru and Nyabarongo rivers and the Rwabusoro plains, Southern Province. Peat in the Rwabusoro marshland and around the Akanyaru River can fuel 450MW of electricity generation for 25 years. The implementation of the peat to power plant will result in about 90% increase of the current total power generation in the country.

Speaking at the signing, the Rwanda Development Board’s acting Chief Operating Officer Tony Nsanganira maintained that: “Energy is a key component of economic development and as such Hakan’s peat power plant investment will further boost Rwanda’s competitiveness.”

Hakan Mining and Generation Industry and Trade inc. was incorporated in Turkey in 1995; the company was established for the purpose of energy production and mining.

 

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Fabrice Ndaka is a Working Partner and Contributor to RwandaEye. A post-graduate from Oxford University (Said Business School), he is a financial consultant. Fabrice also contributes articles to Financial Magazines in Europe and Africa.

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