Volume I: Investment Prospectus Rwanda Electricity Sector Access ...

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Figure 3.2: Electricity Sector Players in RwandaPolicy andRegulationOperations andCustomersPlanning andFinanceprovide input onrelevant issuesLine Ministries(MINALOC,MINEDUC,MINISANTE)MININFRARURAsets sectorpolicylicenses providersand regulates tariffsissuesconsents forsmall-scaleprovidersDistrictAdministrationsownsSmall-scaleProvidersGovernmentprovideelectricity toconsumersElectrogaz /RECOConsumersprovide subsidiesfor infrastructureand operationsplans newinfrastructure,negotiates PPAsMINECOFINprovide subsidies andtechnical assistanceMININFRADevelopmentPartnersElectrogaz / RECOElectrogaz has existed for thirty-two years as a vertically-integrated electricity and waterutility. Electrogaz was formed as a Government owned and operated company in 1976, 4 andhas traditionally been responsible for all electricity sector operations—electricity generation,transmission, distribution and customer connections and billing. In 2008, the RwandanParliament passed a new law establishing separate utilities for electricity (Rwanda ElectricityCorporation (RECO)) and water (Rwanda Water and Sewerage Corporation (RWASCO)).The new law classifies RECO as “a public institution that performs commercial or industrialactivities”. 5The law gives RECO legal status with administrative and financial autonomy to operateelectricity infrastructure, encourage the use of electricity, facilitate private investment, extendservices, identify cheap power options and cooperate with similar regional institutions. TheBoard and Managing Director are appointed by the Prime Minister. 6 Daily management isentrusted to the Managing Director answerable to the Board.45Decree n° 18/76-1976 (20 April 1976) granted a monopoly to Electrogaz over the production and distribution of waterand electricity for 99 years. The monopoly was removed in August 1999 under Law n° 18/99. During the period from2003 to 2005, Electrogaz was operated by Lahmayer International under a management contract. In 2005 themanagement of Electrogaz reverted to the Government of Rwanda.Law Establishing Rwanda Electricity Corporation and Determining its Responsibilities, Organisation, Functioning,Article 1.6 Law Establishing Rwanda Electricity Corporation and Determining its Responsibilities, Organisation, Functioning, Article7.10
Central GovernmentThe Government’s role in the electricity sector is to set sector policy, monitor performanceand implement sector rules and regulations. The Government also helps to plan and financenew electricity investments, bolstering capacity in Rwanda to prepare for future demand andengage private sector investors. As the owner of the national electricity utility, theGovernment also plays a role in providing electricity supply to consumers.MININFRAThe Ministry of Infrastructure (MININFRA) leads the Government’s policy-making in theelectricity sector. MININFRA’s role is to advise on policy issues and reach a consensus onpolicy goals in the energy sector. In recent years, MININFRA has been involved in planningmajor electricity sector investments and obtaining funding for investments from the Ministryof Economy and Finance (MINECOFIN). MININFRA is also responsible for negotiatinggas concessions and power purchase agreements (PPAs) with private investors.A draft law has been prepared to set up the Rwanda Energy and Water Board withinMININFRA. The objective of this initiative is to have an operational body attached to theMinistry with greater flexibility and ability to undertake quasi-commercial functions, such asresource development, licensing, fieldwork, data collation and publication of sector statistics.MINECOFINThe Ministry of Finance and Economic Planning (MINECOFIN) is a lead partner in thesector. In recent years, the Government has provided funding for new thermal fuel, hydroand gas generation assets and has subsidized expenditures for fuel. MINECOFIN retains asignificant interest in how the sector is run and resourced, as well as representing theGovernment as the owner of the electricity utility.Other Line MinistriesThe key line ministries playing a significant in the electricity sector as consumers andcollaborators include the Ministry of Local Government (MINALOC), Ministry ofEducation (MINEDUC) and Ministry of Health (MINASANTE). These line ministries areparticularly interested in the targets in the access programme for connecting health facilities,schools and administrative centres.RURAThe Rwanda Utilities Regulatory Authority (RURA) was created in 2001 to independentregulate public utilities, including electricity and the extraction and distribution of naturalgas. 7 RURA is required to “promote the interests of users and potential users who requiregoods and services provided by certain public utilities”. 8 RURA is required to set tariffs andtariff methodologies that are non-discriminatory, facilitate competition, recover theeconomic costs of supply, allow the recovery of justified costs, and promote economicdevelopment and encourage efficiency. 97 Law 39-2001 of 13 September 2001 Establishing an Agency for the Regulation of Certain Public Utilities (the “RURALaw of 2001”).8 RURA Law of 2001, Article 13.9 Electricity Law, Article 26.11
Page 1: Rwanda ElectricitySector AccessProg
Page 5 and 6: Table of Contents1 Purpose of Prosp
Page 7 and 8: Figure 2.2: Comparative Data from A
Page 9 and 10: Glossary of TermsAbbreviations and
Page 11 and 12: Executive SummaryThe Government of
Page 13 and 14: A series of important conclusions o
Page 15 and 16: There are three sources of funds fo
Page 17 and 18: 1 Purpose of ProspectusThe Governme
Page 19 and 20: 2 Access Programme is a Critical Pa
Page 21 and 22: supply capacity is available as exp
Page 23 and 24: Table 2.2: EDPRS Targets for Expand
Page 25: important for the access programme,
Page 29 and 30: 3.4 Energy Sector Legislation and R
Page 31 and 32: Figure 4.1: Overview of Approach to
Page 33 and 34: Table 4.1: Variables Considered in
Page 35 and 36: Figure 4.3: Location of Administrat
Page 37 and 38: In order to provide a realistic vie
Page 39 and 40: The planning approach compares the
Page 41 and 42: • Presidential priorities for ele
Page 43 and 44: Figure 4.8: Least Cost Grid Priorit
Page 45 and 46: Figure 4.12: Least Cost Grid Priori
Page 47 and 48: Figure 4.14: Least Cost Grid Priori
Page 49 and 50: Off-grid micro hydro systemsThe com
Page 51 and 52: Table 4.4: Social Institutions Elec
Page 53 and 54: Figure 4.17 (below) indicates the l
Page 55 and 56: Figure 4.19: Overall Electrificatio
Page 57 and 58: 5 Funding for the Access ProgrammeT
Page 59 and 60: The average contract size is expect
Page 61 and 62: Estimates of the capital cost of th
Page 63 and 64: ased on how much is needed to meet
Page 65 and 66: which estimate 370GWh of domestic e
Page 67 and 68: Table 5.5: Capital Cost of Sector I
Page 69 and 70: on approximately 75 percent of resi
Page 71 and 72: • The capital costs of the access
Page 73 and 74: • EPC contracts for half of the n
Page 75 and 76: Managing Director of RECO will then
Page 77 and 78:
Figure 6.2: Overview of Programme M
Page 79 and 80:
The electricity utility is well-pla
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To account for funds committed to t
Page 83 and 84:
Impact on funding requirements-US$1
Page 85 and 86:
7.3 Management of Development Partn
Page 87 and 88:
ReferencesColumbia Earth Institute.
Page 89:
T: +1 (202) 466-6790F: +1 (202) 466
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