Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
The Ruzizi IV (287 MW) power plant project is located on the Ruzizi River, which forms a common border between Rwanda and the Democratic Republic of Congo (DRC) to the north, and between DRC and Burundi to the south. According to the pre-feasibility study by FICHTNER (May 2010), the plant will be situated between the existing Ruzizi II Hydropower plant (43.8 MW), operated by SINELAC since 1985, and the Ruzizi III Hydropower plant currently under development. The water intake for Ruzizi IV will be located 1 km from the Ruzizi II power plant, which means this plant will not require a large dam, as it will use water already processed by the Ruzizi II power plant. As a result, the cost of electricity produced by this plant may be relatively advantageous.
Objectives
The project aims to: (i) address the significant energy deficit in Burundi, eastern DRC, and Rwanda; (ii) support mining and agro-industry development with an expected immediate energy demand of 80 MW in Burundi, 60 MW in Kivu (eastern DRC), and 60 MW in Rwanda; (iii) complement the Ruzizi III plant to meet growing regional power demand; (iv) provide more affordable electricity through efficient use of shared water resources; (v) create approximately 4,000 jobs across development, construction, and operational phases; and (vi) strengthen regional integration and cooperation among CEPGL member states.
Strategic Importance
Ruzizi IV represents a strategic regional energy infrastructure project that will play a vital role in enhancing integration among the Economic Community of the Great Lakes Countries (CEPGL) member states. As the third shared hydropower infrastructure in the region utilizing common water resources, it will deepen economic cooperation among Burundi, DRC, and Rwanda while addressing critical electricity deficits. The project is particularly important given the current energy context, where Ruzizi III (even when commissioned by 2030) will only partially address the significant deficit observed on the interconnected grid from 2022 onward. The development of Ruzizi IV is therefore essential to meeting the growing energy demands of the region, particularly for emerging mining and agro-industrial developments requiring substantial power supply. From a regional integration perspective, the project demonstrates the benefits of cooperative management of shared resources for mutual economic gain.
Technical Specifications
Technology & Design
The project will utilize modern hydropower technology appropriate for the specific conditions of the Ruzizi River. Technical design elements will be finalized during the feasibility studies but are expected to include: run-of-river configuration utilizing water already processed by Ruzizi II; Francis turbines optimized for the site head and flow characteristics; modern control and automation systems; and grid synchronization equipment compatible with the regional network. The design will incorporate climate resilience features and environmental flow provisions.
Capacity & Size
287 MW installed capacity with expected average annual generation of approximately 1,300-1,500 GWh, depending on hydrological conditions and operational regimes. The relatively small dam size (utilizing water already processed by Ruzizi II) combined with substantial generation capacity makes the project particularly cost-effective compared to typical greenfield hydropower developments.
Technical Details
The technical specifications will be finalized during the detailed design phase but are expected to include: (i) Run-of-river configuration with limited additional impoundment requirements; (ii) Estimated head of approximately 35-40 meters; (iii) Design flow of approximately 800-850 m³/s; (iv) Francis turbines (likely 5-6 units) optimized for site conditions; (v) High voltage transmission facilities (likely 220 kV) for grid connection; (vi) Digital control and protection systems; (vii) Environmental flow management capabilities; and (viii) Sediment management provisions appropriate for the Ruzizi River characteristics.
Development, Implementation & Financial Details
Development Timeline
The preparation process for the construction of the Ruzizi IV power plant includes four components: (i) Technical studies (Feasibility, Detailed Preliminary Design, Bidding Documents) and Environmental and Social Studies (ESIA, ESMP, RAP) - 24 months; (ii) Study of the institutional framework, financial structuring, and project bankability - 24 months from now; (iii) Preparation for project implementation - 12 months after completion of the feasibility study (36 months); and (iv) Project management, monitoring, and coordination (ongoing throughout the development phase). Total development timeline: 36 months.
Latest Implementation Updates
UPDATED2025-07: Current Status: S2B Full Feasibility Studies;
Milestones Achieved: Environmental & Social Impact Assessment and Stakeholder Participation Plan underway;
Financing Status: Preparatory cost €9.362 M (Studies: €5 M; Institutional: €1 M; Prep: €2.365 M; Management: €0.997 M);
Next Steps: Technical feasibility studies, detailed design & bidding documents;
Additional Doc: https://pp2.au-pida.org/wp-content/uploads/formidable/4/Rwanda_Energy_Policy_March_2015.pdf
Financing Structure
The project preparation phase is financed through grants awarded to the three CEPGL member countries by: (i) European Union: €8,000,000; (ii) African Development Bank/NEPAD: €889,000; and (iii) State Contributions: €473,000. The EU funding is channeled through the AfDB via a partnership agreement (PAGODA). For the construction phase, financing structures will be determined through dedicated studies on institutional frameworks, financial structuring, and project bankability currently underway.
Capital Structure
The capital structure for the construction phase will be determined through the ongoing institutional and financial structuring studies. Based on similar regional hydropower projects, it is anticipated that the structure will likely include a combination of concessional loans from development finance institutions, commercial financing, and equity contributions from member states and potentially private investors. A public-private partnership model is being considered to optimize financing while ensuring affordable electricity costs.
Project Timeline
Start Date
January 2023
Expected Completion
December 2028
Development Timeline
The preparation process for the construction of the Ruzizi IV power plant includes four components: (i) Technical studies (Feasibility, Detailed Preliminary Design, Bidding Documents) and Environmental and Social Studies (ESIA, ESMP, RAP) - 24 months; (ii) Study of the institutional framework, financial structuring, and project bankability - 24 months from now; (iii) Preparation for project implementation - 12 months after completion of the feasibility study (36 months); and (iv) Project management, monitoring, and coordination (ongoing throughout the development phase). Total development timeline: 36 months.
Project Status History
Status 2020
Pre-Feasibility
Status 2022
Pre-Feasibility
Status 2024
Feasibility
Additional Project Details
Preparation Funding Gap
USD 0.00M
Construction Timeline
The construction timeline will be defined in detail during the feasibility and detailed design phase. Based on similar projects and preliminary assessments, construction is expected to take approximately 48-60 months from financial close, including mobilization, civil works, electromechanical equipment installation, testing, and commissioning.
Legal & Financial Advisors
Technical consultants will be selected through competitive process during project preparation. Legal and financial advisory services will be determined through the institutional and financial structuring studies.
Market Analysis
Market Analysis
The regional power market analysis indicates significant supply deficits across all three countries, with demand growing at 7-10% annually. Current generation capacity falls well short of demand, resulting in frequent load shedding, industrial production constraints, and reliance on expensive thermal generation. The commissioning of Ruzizi III by 2030 will only partially address the growing deficit, making Ruzizi IV essential for regional energy security.
Market Demand
The Ruzizi IV project is highly justified given the prospect of setting up mining and agro-industry with an expected immediate energy demand estimated at 80 MW in Burundi, 60 MW in Kivu in eastern DRC, and 60 MW in Rwanda. Anticipated major loads in Rwanda alone are projected to reach around 450 MW by 2029. The combined demand across the three countries provides a strong market for the full 287 MW capacity, with potential for regional exports as the East African Power Pool develops further.
Key Stakeholders
Project Sponsor
CEPGL Member States (Burundi, Democratic Republic of Congo, Rwanda) with support from the European Union and African Development Bank
Key Parties
Energie des Pays des Grands Lacs (EGL), Economic Community of the Great Lakes Countries (CEPGL), Ministries of Energy in Burundi, DRC, and Rwanda, National utilities: REGIDESO (Burundi), SNEL (DRC), and EUCL (Rwanda)
Investors
European Union, African Development Bank, CEPGL Member States
Contractors & Operators
To be determined through international competitive bidding following project preparation
Risk Assessment
General Risk Assessment
Key risks identified include: (i) Coordination challenges across three countries with different regulatory frameworks, political systems, and economic conditions; (ii) Security concerns in eastern DRC that may affect project implementation; (iii) Hydrological risks including climate change impacts on the Ruzizi River flow regime; (iv) Financing challenges given the large investment requirements; (v) Environmental and social impacts requiring careful management; and (vi) Technical implementation complexities. Risk mitigation strategies will be developed for each category as part of the project preparation process.
Regulatory Risks
Regulatory risks include: (i) Need for harmonized regulatory frameworks across three countries with different legal systems; (ii) Requirement for equitable water resource sharing agreements; (iii) Potential changes in energy sector policies in member countries; and (iv) Challenges in establishing appropriate regional institutional arrangements for project implementation and operation. These risks will be addressed through the institutional framework studies and through the established mechanisms of the CEPGL.
Impact Assessment
Environmental Impact
EGL is preparing to undertake comprehensive environmental studies that include partners' new Integrated Safeguard System (SSI) requiring: Emergency Preparedness and Response Plan (EPRP), Biodiversity Action Plan (BAP), Health Impact Assessment (HIA), Livelihood Restoration Plan (LRP), and Stakeholder Participation Plan (SPP). These studies will follow rigorous international guidelines and ensure comprehensive assessment and mitigation of environmental impacts. The project is expected to deliver significant environmental benefits through clean energy generation, displacing carbon-intensive sources like diesel generation, firewood, and charcoal that currently dominate the regional energy mix.
Social Impact
The social impact assessment will be completed as part of the comprehensive environmental and social studies. Preliminary estimates indicate job creation potential of approximately 4,000 positions across development, construction, and operational phases. The project will deliver significant economic benefits to local communities through direct employment, supply chain opportunities, infrastructure development, and improved electricity access. Additional social development programs will be designed based on community needs assessments conducted during project preparation.
Investment Opportunities
Private Sector Opportunities
Private sector opportunities include: (i) potential equity investment through the PPP structure being developed; (ii) EPC contracting for dam construction and power plant infrastructure; (iii) supply of electromechanical equipment; (iv) operations and maintenance services; (v) transmission infrastructure development; and (vi) consulting services for various technical aspects. The specific structuring of private participation will be determined through the ongoing institutional and financial studies.
Next Steps & Agreements
Next Steps
Key next steps include: (i) Completion of technical feasibility studies, detailed preliminary design, and bidding documents; (ii) Finalization of environmental and social studies including ESIA, ESMP, and RAP; (iii) Development and implementation of project communication and visibility strategy; (iv) Completion of institutional study, financial structuring, and project bankability assessment; (v) Financial audit of the project preparation phase; and (vi) Development of terms of reference for the project implementation phase.
Offtake Agreements
The offtake arrangements will be determined through the institutional studies but will likely involve long-term Power Purchase Agreements (PPAs) with the national utilities of Burundi, DRC, and Rwanda. Based on the experience of existing community projects (Ruzizi I and II), these utilities will purchase the available power according to pre-determined allocation formulas that ensure equitable distribution of benefits while maintaining operational flexibility.
Contact Information
Energie des Pays des Grands Lacs (EGL), Direction for Energy, Coordinator: Director for Energy (EGL)
