Anzana Plans to Acquire Stake in Burundi-DRC-Rwanda Hydropower Project

Anzana Electric Group has signed a tentative deal with Ruzizi III Holding Power Co. Ltd. (RHPCL) to acquire up to 10 percent in a hydroelectric project that would serve Burundi, the Democratic Republic of the Congo (DRC) and Rwanda.

The agreement for the 206-megawatt Ruzizi III Regional Hydropower Project was part of over $2.5 billion in deals and commitments between African and American partners signed during the United States-Africa Business Summit in Luanda, Angola, according to the U.S. State Department.

The $760-million project is planned to rise on the Ruzizi River between DRC in Central Africa and Rwanda in Eastern Africa. It is a private-public partnership. RHPCL, a special-purpose vehicle registered in Rwanda, is the private partner to the project company Ruzizi III Energy Limited under a build-own-operate-transfer scheme.

RHPCL expects to power about 30 million people across the three neighboring countries, “in a region where 54 percent live below the poverty line and electricity access averages just 24 percent”, said a joint statement by RHPCL and Anzana.

“The project will nearly double Burundi’s current capacity, boost Rwanda’s by 30 percent, and deliver critical baseload and dispatchable power to eastern DRC, advancing economic growth, regional integration, and energy security in one of Africa’s most underserved regions”.

RHPCL and Anzana, which invests in hydropower and grid distribution projects in East, Central and Southern Africa, committed to negotiating for a binding partnership agreement to be penned by September.

“The agreement will outline governance rights, investment commitments, and the trajectory for further collaboration”, the companies said.

Anzana chief executive Brian Kelly said, “Through this partnership, we are not only powering homes, communities, and industries, we are helping to drive regional integration, strengthen energy security and stability, and pave the way for expanded U.S. investment and trade in Africa’s energy future”.

On the same occasion U.S. energy investor Hydro-Link inked an agreement with Angola’s government to build a $1.5-billion private transmission line connecting hydropower sites in Angola to critical mineral mines in the DRC. The 1,150-kilometer (714.58 miles) transmission corridor would deliver up to 1.2 gigawatts of power from the Luaca plant and other facilities to the Kolwezi mining region.

Meanwhile CEC Africa Sierra Leone Ltd. signed a memorandum of understanding (MOU) to build West Africa’s first terminal for the importation of U.S. LNG, in partnership with AG&P. Also supported by the U.S. International Development Finance Corp., the terminal is expected to supply energy for the 108-MW Nant Power Project in Sierra Leone, as well as household and industrial users in the country. 

In other agreements during the summit, a U.S. consortium led by Amer-Con Corp. partnered with the Angolan Cargo and Logistics Certification Regulatory Agency to construct 22 grain silo terminals along the Lobito Corridor, a project also backed by the U.S. Export-Import Bank.

U.S. digital and cybersecurity solutions provider Cybastion and Angola Telecom signed a $170 million investment agreement to deploy Cybastion’s  “Digital Fast Track” initiative, providing training and modern infrastructure for Angola’s digital transformation. 

Additionally the U.S. International Finance Partners signed an MOU with Ethiopia Investment Holdings to invest over $200 million in the development of luxury hotels, branded residences and related tourism infrastructure in Ethiopia. 

To contact the author, email jov.onsat@rigzone.com