The project consists of the construction of a 147 MW Hydropower Plant on the Ruzizi river bordering DRC and Rwanda. It will be developed as a Public Private Partnership, through a concession provided to a private investor to develop, build, operate, and maintain the plant. Ruzizi III would be the third hydropower development on the river following Ruzizi I ("RI" - 29.8 MW) and Ruzizi II ("RII" - 43.8 MW). Reinforcement and extension of the transmission and distribution system in the DRC, Rwanda and Burundi will allow the evacuation of the additional 147 MW that will be produced by the new Ruzizi III hydropower plant.
Further to the finalisation of the feasibility studies and the selection of a preferred investor to develop Ruzizi III (the consortium IPS-Black Rhino), negotiations led to the signing of a Project Term Sheet in September 2014. However, before all project documents can be signed and both the Sponsor and the lenders commit their funding (equity and debt) to RIII, which would allow RIII to commence construction, a number of key development activities are still required. This includes the undertaking of additional geological studies, updating of the ESIA, preparing and launching the bid and negotiation of the EPC contract as well as the Operations and Maintenance Agreement, and the further development and negotiation of all project documents. In addition, lenders will have to conduct the due diligence of the project.
The Lenders’ appraisals are expected to take place by the end of 2016 and Financial Close mid-2017.
The IG for the co-financing of project development costs related to geological, design and other studies to be incurred by the private sector developers of this project to be converted to Governments' equity at Financial Close.