Rwanda - Energy Sector Rehabilitation Project

C - ,c { v!:Zl L -. --- 4 t Document of The World Bank FOR OFFICIAL USE ONLY Report No. 11241-RW STAFF APPRAISAL REPORT REPUBLIC OF RWANDA '=NERGY SECTOR REHABILITATION PROJECT January 13, 1993 MTCIROFT(CHE CC<PY Report No.: 112'41-RW Type: (SAP?) Ti tl e: ENERGY SECTOP REHABILITAI01ON PfP' Aut,hor: S:EN('J 1 Fxt.. 34'00().' VDot- m:J70(C,0) Dept . AF31E Industry and Energy Operations Division South-Central and Ifidian7OceanDeaprtment Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without Wodd Bank authorization.  CURRENCY BOUIVALEN1S C-arency unit Rwanese Franc (RWF) 1992 US$1 = RWF 12S (1st smester) 1992 US$1 RVWF 145 (effective June 1992) WEIGHTS AND MEASURES Kilometer (kmn) = 1,000 m or 0.62 miles Klaovolt (kV) 1,000 volts Kilovolt ampere (kVA) 1,000 volt ampae Kilowatt OM) = 1,000 watts Kilowatt hour (kWh) 1,000 watt hour Gigawatt hour (GWh) = 1 million kldowatt hour (kWh) Megavolt ampere (MVA) = 1,000 kilovolt ampere (kVA) Megawat (MW) = 1,000 kilowatts (kW) Nmn3 = 1 Normal cubic meter (C 2S C, 1 atmosphere) 1 ton of Oil Equivalent (TOE) = 10,500,000 kilocalories or about 7.S bbl of crude oil 1 kilogram (kg) = 2.2 pounds (lb) I literQ ) 0.26 US gallon (gal) 1 metdc tor. (m ton) 2,204 pounds (lb) 1 barrel (bbl) 0.16 cubic meters 1 imperial gallon (IG) = 1.2 U.S. gallons GLOSSARY OP ABBREVIATIONS AGCD = Agence Gdnerale de Cooperation et de Ddveloppemcnt (Belgian Aid Agency) CCCE = Caisse Centralc do Coopdration Economique (Fr_nch Aid Agency) DGBH = Direction Gendralc do l'Encrgic ct des Hydrocarburea (Energy Directorate) DOF Direction G6n6rale des Forets (Forestry Directorate) DM = Deutsch mark EDF = Electricit6 de France (French Power Company) EIB = European Investment Bank ELECTROGAZ = Ptablissement Public de Production de Transport et do Distribution do l'Eau, d'Electricitce do Gaz (Rwandew Utility Company) ESMAP Energy Sector Management Assistance Programme GTZ German Aid Agency HV High Voltage LCR = Lease Contractor Rate LRMC Long Run Marginal Cost LV Low Voltage MICOMART = Ministry of Commerce, Industry and Handicrafts MINAGRI Ministry of Agriculture and Animal Husbandry MIN1TRAPE = Ministry of Public Works and Energy MV Medium Voltage NFP National Forestry Fund OGL Open General Licence PCAU = Project Coordination and Administration Unit PCR = Project Completion Report PB Public Enterprise PIU = Project lmplementation Unit PPP Project Preparation FaciLty SAC Structural Adjustment Credit SAR = Staff Appraisal Report SDR = Special Drawing Rights SHS= Solar Household System SINELAC = Socict6 Itemationale d'Electricit6 des Pays des Grands Laca (Operator of Ruzizi H Power Dam) SNP Societ6 Nationalc do Patrimoine (National Holding Company) SOCIGAZ Societc Commerciale et Industrielle du Gaz Methane du Lac Kivu SPE = Societc Prive d'Exploitation (Private Operator) SSA = Sub-Saharan Africa UNDP = United Nations Development Program FISCAL YEAR January 1 to December31  FOR OMCIAL USE ONLY TABLE OF CONTENTS CountryandSector Badlgound ........... 1 Governunent'sEnergy StategyandPolicy ................................ 2 L THE ENERGY SECrOR ...................................................... 2 A. Enrgy Consumpton Paterns .................................... 2 B. ThePowerSubsector .......................................... 3 Past Evolution of Demand .................... 3 Future Denand Growth .................................... 4 Supply of electricity ....................................... S Transmission .. 6 Distribution ............................................ 6 SystemOperadonand Manhance ............................. 7 Electicity Tariffi; ..................................................... 7 C. T he Woodftd Subsector ........................................ 9 D. ThePetrole SubmeborW ....................................... 11 E. EnergySeS w Priority lavestmnent Plning ........................... 12 This report is based on the fidin of an appraisal mission to Rwand in AprIMay 199 wich consisted of Mess. Richard Senou, Fiancial Analyst rask Managr); Angel Baide, Power Enginee; RobertVan der Plas, EnergyPlanner; Colette Craven, Economist; Sunil Matrani, ConutntEconomist; Michel Patou, Petroleum Consultant; Gerard Madon, Energy Consultant; and Benard Meunier, Solar Energy Consultant. Mr. Brian Dowse contrbuted to the methane gas component of the report. Messrs. James Bond and Bocar Ihiam were the Peer Reviewers and Mr. Louis Coselza, the Lead Advisor. Ms. Lily Wong provided secretarial support in the preparation of the report. M;. Michael Sarris and Mr. Francisco Aguirre-Sacasa are the managing Division Chief and the Department Director, respectively, for the operation. This document has a retricted distribution and mnay be used by recipients only in the perfotrnance. of theiir official duties. Its contents rnay not otherwise be disclosed without World Bank authodizatio- .  TALE OF CONTSN f'p 2) H. THE ENERGY SECTOR *NS1 lONS ........... .............. . 13 A. 1hePolt Makingstfltutdos ............ . ................. .,.. 13 B. Operf CnIghdtudon ............ 0........... #.......... 14 1. E[ECT"ROGAZ ................................ * ....... 14 Organizalonad _ .......... .......... 14 Staf and Peoned ................... 15 Accoundig,Auditd nsre .............. ..... . 16 2. Proposed lnstlonthmlflewonPrograuad Poky Measwre .......... 17 3. Mme Now hisdtlodos...... . ......... ................ ...... 17 The LeaseC .onta ................................... 19 Finacing die operations of fte amw InstutIon ... ......... ..... 20 Pvate Operat Access to Forig Exchan.e. .......... . 21 L BANK SUPPORT TO ITe SoCXOR ......... ... ....... . 21 A. Bank Asslsantothe Sectw .............. ..... . ........... 21 B * IDA Strateaj and Rationale for Indvolven