The Government of Rwanda has signed power purchase and concessional agreement Hakan Mining and Electricity Generation, a Turkish company for the development of a 80 MW peat power plant in Rwanda.
The deal will see Hakan invest $400 million for the project. Hakan company will finance, design and build a peat power plant to produce electricity from peat extracted from the South Akanyaru peat project in Gisagara district.
The construction period is 47 months and power is expected at the end of March, 2020.
According to sources, the government has been struggling with another peat power project expected to provide 15MW in Gishoma, Rusizi district, due to bad feasibility studies.
Currently, the country has so far installed electricity capacity of 185MW and the target is to achieve 563 MW power supply by June 2018. It also intends to increase power generation and access through the PPP and BOT models.