Rwanda, Turkey’s Hakan Mining Sign $283 Million Power Plant Deal

Rwanda signed a 220 million euro ($283 million) agreement with Turkey’s Hakan Mining and Generation Industry and Trade Inc. to build a 100-megawatt peat- fired power plant.

The generating facility, which will be located in South Akanyaru in the Southern Province, will raise the East African nation’s generating capacity by 90 percent, the Ministry of Infrastructure said in an e-mailed statement.

“Private initiatives and investments in the construction, development and maintenance of sustainable electricity- generating plants provide great economic value,” Emma Francoise Isumbingabo, minister of state in charge of energy and water, said in the statement yesterday.

Rwanda has estimated dry peat reserves of 155 million tons, three-quarters of which are near the plant’s location, according to Isumbingabo. That could generate 450 MW of power annually for 25 years, she said.

Hakan Mining is expected to begin building a peat- extraction facility and the power plant within 12 months to 15 months, she said, without giving a completion date.

To contact the reporter on this story: Saul Butera in Nairobi at sbutera2@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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