The African Development Bank (AfDB) and the Rwandan government on Friday signed a loan agreement, worth US$ 40 million, with which the African country will finance energy projects and curb the worrisome power shortage prevailing in the country for over a decade, PANA learnt from official sources here.
Under the project, Rwanda is to finance the construction of hydro-electric dams and renovate the Rusumo Falls, a river cutting across Rwanda, Tanzania and Burundi .
For some years now, Rwanda has been facing a serious energy shortage, prompting the Rwandan authorities to adopt a policy aimed at promoting the use of different forms of energy.
Through this initiative, the Rwandan authorities are targeting to raise access to electricity from 17% to 70% by 2017.
Firewood is still the main source of energy in the country, especially in the rural areas with about 93% of the population.
Official statistics indicate that at least 80% of electricity generated in Rwanda, mainly by hydro-electric dams, are distributed in the city of Kigali and its vicinity where there are only 5% of the total population.