Last week the Government of Rwanda signed a deal with Vivo Energy for the supply of over 200 electric buses in Kigali.
Rwanda Development Board (RDB), the Ministry of Infrastructure, City of Kigali and Rwanda Social Security Board (RSSB), represented the government’s interest in the peoject.
Vivo Energy Rwanda has two responsibilities; to procure the buses and build a charging and maintenance depot.
Taarifa caught up with RDB CEO, Clare Akamanzi, for more details. Akamanzi shaded light on the cost of the project, source of funds and structure of the venture.
How much is the total investment and how much stake does RSSB/GoR have in this venture?
Akamanzi: This is still being finalized with the relevant suppliers for the buses and depot. RSSB will be equity investors, and the amount will be determined once the final costs are in. Working estimates are U$90m for the entire project, and RSSB may take up to 30%. We don’t own equity in the business. Rather, we will lease the buses as Government of Rwanda, maintain them, and run the depot.
What is the nature/structure of the partnership?
Akamanzi: The next steps include determining the exact structure structure and how buses will be availed to operators.
Who approached the other in this project?
Akamanzi: Vivo is currently an investor in Rwanda. The Government of Rwanda through the Ministry of Infrastructure (MININFRA) proposed to VIVO to consider emobility as a solution to public transport. The two sides then commenced negotiations.
How will the project make return on investment?
Akamanzi: Revenues will be from the payments made by the public, and the payback period will depend on final costs.
If you add more projects in the pipeline, …almost 500-1000 buses and recemt demand in individual electric vehicles…does the city of Kigali have enough electricity to handle 200 business and more?
Akamanzi: Well, we have alot of electricity underway and this is one way to prepare consumption.
Which projects are those…any example?
Akamanzi: Shema power and Kivu watt from methane gas, Hakan pest power, Gishoma, Nyabarongo, Regional hydro projects line, Rusizi and Rusumo.
