Transmission and Distribution Projects

Burundi

Boosting rural electrification in partnership with the private sector

In December 2024, MIGA issued a $10.9 million guarantee to Anzana Electric Group (formerly Virunga Power) of Mauritius for its investments in Weza Power. The guarantee covers the risk of breach of contract for up to three years.

Weza Power is a newly established private utility formed under an innovative Public-Private Partnership (PPP) framework to expand the electricity distribution network and increase access to clean, affordable and modern energy in rural and sub-urban areas of Burundi.

The World Bank Group Guarantee Platform is supporting an innovative and transformational rural electrification model, driven by a private company taking on the role of a utility. Providing guarantee cover for the feasibility-phase can be critical to crowding in private sector investment into the higher risk development phases of a project. This approach is particularly important for supporting a more efficient use of scarce public financing and helping accelerate the development of new project concepts that could have otherwise been delayed due to the scarcity of financial resources. The Weza Power project business model has the potential to be widely replicated, bringing electricity to the homes of millions.

Rwanda

Promoting Rwanda’s first interconnected grid project

MIGA supported Rwanda’s first interconnected mini-grid project with $9 million of guarantees, facilitating private investment in the power sector.

In April 2024, MIGA issued guarantees of $9 million to Oikocredit, Ecumenical Development Cooperative Society U.A., Triodos Groenfonds and Triodos Emerging Markets Renewable Energy Fund for their investments in ARC Power Rwanda Ltd. of Rwanda, a subsidiary of Arc Power Ltd., UK. The guarantees protect against the risk of breach of contract for up to eight years.

The project will be the country’s first interconnected grid network, with solar generation units installed within village networks. Instead of a stand-alone mini-grid system, ARC Power is constructing the transmission and distribution infrastructure, which will connect their solar PV generation facilities directly to productive users. These distributed solar units will each directly serve 25 to 30 users, including schools, health centers, local government offices, small and medium enterprises, commercial centers, and business parks. The project is expected to connect approximately 30,000 new customers living in 150 villages to the Rwandan national grid for the first time, benefiting around 118,000 people.

The project has also launched a clean cooking program, enrolling influential women leaders as ambassadors to facilitate the adoption of the electric cooking technology among other women in the community.