The governments of Burundi, the Democratic Republic of Congo (DRC) and Rwanda have signed an agreement with IPS, the industrial and infrastructure development arm of the Aga Khan Fund for Economic Development (AKFED), and Norwegian renewable energy company SN Power for the development of a 147 MW Ruzizi III hydropower project. 

The hydropower plant will be located on the Ruzizi River between Rwanda and DRC. Ruzizi River flows from Lake Kivu to Lake Tanganyika in central Africa and delineates the southern border of Rwanda with DRC and also forms the border between DRC and Burundi.

The project is expected to cost around US$700 million. The funding will be sourced from the financing package to be provided by the African Development Bank, European Investment Bank, European Union, KfW, AFD, and the World Bank. Once operational, the energy produced will be sold at US$0.11 to US$0.13 per kWh.

The hydropower plant will be developed under the build, own, operate, transfer (BOOT) structure on a 25-year concession agreement and power purchase agreements. The project is expected to reach financial close in 2021 and is expected to be operational by 2056.