The plant is being constructed on Mukungwa River in Nkotsi Sector in two phases; Rwaza I to produce 2.6 megawatts, and Rwaza II, the second phase will start later along the same river to add one megawatt to the national grid, according to the officials.
Both phases are expected to cost $17m, according to project developers.
DC HydroPower (Rwanda) identified and developed the project through the feasibility stage and signing of the Power purchase Agreement (PPA) with the Rwanda Energy Group.
Frontier Energy company from Denmark and ResponsAbility Renewable Energy Holding (rAREH) joined DC HydroPower as investment partners during the final stages of development.
Speaking at the groundbreaking ceremony yesterday, infrastructure minister James Musoni said the project demonstrates proper partnership between private sector and government to help the country achieve its target of providing energy to all Rwandans.
"This power plant might be small in size but we have no doubt that it will greatly contribute to our bold vision. This project could not have come at a more opportune time, as we project our energy demand to soar," he said.
The plant is expected to be completed by July next year.
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