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The first phase of this program will provide, in 2007, 34.9 MW of electric capacity to the national grid with a target of reaching 200 MW in 2020. After extensive negotiations between the GoR and Dane Associates Ltd, a gas concession agreement and a power purchase agreement for 34.9 MW were signed on March 07th, 2005. The execution of the project will be carried out through a joint Dane/GoR (70%/30%) company, Kibuye Power 1 Ltd.
The main features of the project are as follows:
- Technical aspects
The project involves the development and operation of two plants:
- A natural gas extraction and processing plant, with an installed capacity of 60 million of cubic meter of methane per year, where the methane fraction in the natural gas is 85%.
- A gas-fired power plant with a total installed capacity of 34.9 MW.
The power plant and the natural gas processing plant will be located nearby the district city of Kibuye within a future industrial area. The energy produced will be delivered to the Rwandan national grid and will be sold by the national company ELECTROGAZ.
- Commercial aspects
The main sponsors of the project are the GoR and DAL. The project is to be executed on a BOO (Build, Own and Operate) basis.
Following the signing of final agreements with the Government of Rwanda, the project is expected to entry in commercial phase in mid 2007.
- Environmental aspect
According to the findings of the environmental impact assessment, this project will contribute to a reduction in the use of firewood or charcoal in the region, to the diminution of the natural risk of a disastrous gas outburst from the waters of lake Kivu, to the reduction of the pollution within the local environment by using a clean and renewable energy.
COGELGAS S.A is a Rwandan company jointly owned by the Rwandan Bank of Commerce and Industry (BCDI) and the local brewery ( BRALIRWA) with an ultimate goal to develop large-scale exploitation of Lake Kivu gas reserves.
After signature of a memorandum of understanding with the Government of Rwanda, COGELGAS took steps to commission a South African firm ( Murray and Roberts Engineering Solutions) to develop a detailed engineering design and economic analysis of modular extraction unit. Both the study and the test-rig platform have been successfully completed. However negotiations are still to begin .
COGELGAS have been winded-up and all assets have been transferred to the Rwanda Investment Group, a consortium of local companies interested in investing in strategic economic sectors in Rwanda.
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The Rwanda Investment Group (RIG) and the Government of Rwanda recently signed a 40 years gas concession for Lake kivu gas allowing the generation of up to 50 Mw of electricity in several stage. The first stage will consist of a 4 MW plant to be developed by the Rwanda Energy Company, an affiliate of RIG,at Rambo site, near Gisenyi.
Workshop on Gas and Electricity Laws and Regulations
Mininfra has organised a stakeholders workshop on Gas and Electricity Laws and Regulations on Wednesday 20 to Thursday 21,June 2007 for public and private stakeholders. The drafting process is going on, with further consultations between the Rwanda Task Force and Pierce Atwood. The Final Draft is expected by mid August 2007.
Last updated 17 July 2007