Project Description
On December 20, 2024, MIGA issued a guarantee with a tenor of up to three years to cover the equity and quasi-equity investments from Anzana Electric Group Limited (formerly Virunga Power Holdings Limited, the Guarantee Holder) into Weza Power (the Project Enterprise), against the risks of Breach of Contract, as part of Phase A of the Burundi Electrification Program. This program is a public-private partnership between the Guarantee Holder and the Government of Burundi with the objective of electrifying rural areas of Burundi. Phase A of the program includes feasibility studies and technical design of the distribution network, environmental and social related studies, application for authorizations and permits, establishment of the Project Enterprise, drafting and negotiating of pilot project agreements, fundraising for pilot project, early procurement of materials (poles, wires, transformers, meters, etc.) and any other development activity necessary to prepare and enable the commencement of construction.
As Phase A activities near completion, the Burundi Electrification Program is preparing to advance into Phase B, which marks the pilot implementation phase. Phase B aims to rehabilitate and extend the national electricity distribution network, targeting 55,000 households outside urban and semi-urban areas and comprises four sub-projects (“Lots”): Bubanza (Lot 1), Gitega/Mwaro/Muramvya (Lot 2), Poste Sud–Ijenda (Lot 3), and Muyinga/Karuzi/Ngozi (Lot 4). To support this next stage, the Guarantee Holder has requested an amendment to the current MIGA contract of guarantee, expanding its coverage beyond Phase A to include construction and rehabilitation activities for Lot 3 sub-project (Poste Sud–Ijenda) under Phase B (the Project).
For Lot 3, the project will install approximately 217 kilometers (km) of new low voltage (LV) lines and on the medium voltage (MV) network, the Project will add about 174 km of new lines, rehabilitate 18.7 km of existing lines, and reroute 14 km. Right‑of‑way (RoW) requirements will follow national practice, with a width of around 15 meters (m) for MV lines and 3 m for LV lines, including land‑use restrictions to maintain safe clearances. Upon completion, approximately 10,400 new customers are expected to be connected to the grid. The construction is expected to start in January 2026 and planned for a period of 13 months. Temporary facilities such as worker camps, batching areas, and laydown sites will be established during the detailed design phase.
Environmental Categorization
The original MIGA guarantee for Phase A was categorized as Category C, given the minimal E&S risk profile of Phase A activities. With the proposed amendment to cover Lot 3 under Phase B, the Project is now classified as Category B, under MIGA’s Policy on Environmental and Social Sustainability (2013). Click here for the project’s Environmental and Social Review Summary.
Development Impact
The Project is expected to contribute to advancing the Government of Burundi’s rural electrification strategy through knowledge development and policy advise. MIGA’s involvement also supports innovation in Burundi’s electricity distribution sector offerings and technology transfer. MIGA’s guarantee will unlock private venture capital for a pioneering and transformative initiative for rural electrification of Burundi. The Project is aligned with the Burundi Country Partnership Framework (FY19-23) objectives of increasing access to energy for poor families and seeking opportunities to crowd in private investment and PPP via a One WBG approach.
