Infrastructure Investment Outlook Ministry of Infrastructure The Republic of Rwanda Infrastructure Investment Outlook

Rwanda | Unique Propositions Risk Mitigation | Bilateral Investment Treaty with the United States Rwanda Development Board | Open 24 Hours S & P Country Credit Rating | B with a Positive Outlook Fitch Competitiveness Rating | B with a Stable Outlook Best Global Reformer Since 2005 | World Bank Doing Business 2014 2nd Most Competitive Place to Do Business in Africa | World Bank Doing Business 2014 Positioned 32nd out of 185 Countries | World Bank Doing Business 2014 Cabinet Performance Contracts | Imihigo Rwanda | Unique Propositions

Rwanda | Vital Statistics Integral Member of the East African Community Uganda, Kenya, Tanzania and Burundi (tentative Southern Sudan) At the Heart of COMESA 19 Eastern and Southern African Countries | Well linked with neighbours Aim: To be Information Technology Hub of East Africa Electronic Payments | Online Access Exports Grew 500% | 2004 - 2013 Imports Grew 300% | 2004 - 2013 GDP Growth: 8% | GDP per Capita: US$ 644 Population: 11.5M www.gov.rw Rwanda | Vital Statistics

Transparency International ‘Remarkable progress has been made … Rwanda has gone through a painful process of reconstruction. Institutions are now in place with the objective of fighting corruption. These efforts seem to have yielded results, with the country performing better than many other African countries in terms of control of corruption on most governance indicators …’ Transparency International | 2011 Transparency International

Importance of the Infrastructure Sector MININFRA represents roughly 25% national budget Large Annual Budget | 412 Bn RwF/ (45% externally financed) Supporting other sectors | Service infrastructure Driving private sector growth | majority of new projects in Energy undertaken by private sector Multiple Investment Opportunities | Aviation, Road, Rail, and Water Transport, Energy, Water and Sanitation, Housing and Construction

Bugesera International Airport Transport Sector www.rtda.gov.rw www.rcaa.gov.rw Bugesera International Airport Value of Project Est. USD 600 million Incentives -Site available. -Feasibility Study complete ESIA Completed Activities -Feasibility Study to be altered pending revision of design. -Expropriation to be completed by December 2014 Modality -FBOT or PPP preferred -Construction time: Est. 4 years

Feasibility Study Required Feasibility Study On-going Bus Rapid Transport Lines (BRT) for Kigali City Feasibility Study Required Incentives: Project to develop a modern mass public transport system included in Kigali City Master Plan 2 Phases: 1st Phase North-East to West, 2nd Phase South to West (40km in total) Way forward: Conduct feasibility studies, detailed design and secure funding EPC or PPP model Ring Roads for Kigali City Feasibility Study On-going Incentives: 80km of ring roads identified to increase mobility and reduce traffic congestion. 2 Phases: 1st Phase East to South section, 2nd Phase connecting 1st Phase from South around Kigali to Eastern section. Project provided in the Kigali City Master Plan Detailed study to be carried out 2014/15 Way forward: Detailed study to be completed by May 2015 Proposed model: PPP with toll-road system

Feasibility Study Required Feasibility Study Required Bypass roads in 5 priority cities Value of projects: Est. USD 0.8-1.2m per km Incentives: Rubavu, Huye, Muhanga, Musanze and Rusizi cities selected All feasibility studies and detailed designs to be completed by June 2015 Way forward: EPC or PPP models Express way to Bugesera Airport (EWBA) Value of projects: Est. USD 32-48m Incentives: A 40km transport link between the new airport and Kigali City Road to be 4 lanes (2x2), potential to construct airport roads as well Detailed study to be completed April 2015 Targeting completion by 2017 Way forward: Perform studies and secure funding for EPC or BOT model Feasibility Study Required Huye-Kibeho-Ngoma Road Value of projects: USD 80m Incentives: A 68km transport corridor linking Southern tourism areas Detailed study completed in 2013 Targeting completion by 2016 Way Forward: Currently approaching interested parties, EPC still approachable

Ngoma-Bugesera-Nyanza Road Value of projects: Est. USD 177m Incentives: A 130km transport link between Southern and Eastern Provinces Feasibility study completed in December 2013 Detailed study to be completed in October 2014 Way forward: EPC or BOT model Target to be completed by 2017 Base-Gicumbi-Nyagatare Road Value of projects: USD 194 m Incentives: A key 125km Regional Transport corridor connecting Uganda to Congo, which by-passes Kigali. Located between Northern and Eastern Provinces. Expropriation underway and to be completed by November 2014 Detailed designs completed Base-Gicumbi section already funded Way forward: EPC or PPP model Target to be completed by 2017

Feasibility Study Required Feasibility Study Required Lake Kivu Ferry System Incentives: Fast ferry system for passengers in a touristic and highly populated area, stopping at Rubavu, Karongi and Rusizi Introduction of cargo system additional option Feasibility study completed in 2010 Detailed design to be completed in January 2015 Way forward: PPP model Feasibility Study Required Secondary Cities Urban Roads Incentives: 140km of road to service Rwanda’s 6 secondary cities of Rubavu, Huye, Muhanga, Musanze and Rusizi , Nyagatare To stimulate the development of regional economic activity Feasibility and detailed technical studies are on-going Way forward: PPP or EPC model

Feasibility Study On-going Mombasa – Kampala- Kigali Railway Value of projects: USD 1.5bn Rwanda section (13.5bn entire project) Incentives: Mombasa to Nairobi section launched in November 2013 Feasibility studies are on-going for sections from Nairobi to Kigali A financing source has already been approached, another pending Way forward: Complete studies PPP model (concessions and BOT) Dar Es Salaam Isaka – Kigali Railway Value of projects: USD 979m - construction and 208m - rolling stock Incentives: Feasibility study suggests growth of freight from 2.9 – 13.5 million tonnes (2014-2044). IRR estimated at roughly 31% Transaction Advisor being recruited Way forward: PPP model (concessions and BOT)

Feasibility Studies Completed Energy Sector www.reg.rw Feasibility Studies Completed Hydro Power Rollout Program Value of projects: Site and size dependant , Est. USD 4m per MW Incentives: Over 332 Micro Hydropower sites have been identified Out of 32 green field with feasibility studies, 16 to be tendered out from October 2014) Feasibility studies available for over 45 sites Renewable Energy Feed-in-tariff (RE-FIT) which has been revised upwards (from 50kW to 10MW) Standard PPA for small sites Size varies between 100kW to 2.5 MW Way Forward: Projects with feasibility studies to undergo competitive process on a periodic basis

Feasibility Studies Required Other Small Hydro Power Incentives: Over 332 Micro Hydropower sites have been identified 48 Greenfield sites identified Renewable Energy Feed-in-tariff (RE-FIT) which has been revised upwards (from 50kW to 10MW) Standard PPA for small sites Size varies between 100kW to 2.2 MW Way Forward: Feasibility studies to be carried out and put under competitive process.

Feasibility Study On-going Nyabarongo II Hydro Power Incentives: 110 MW multi-purpose project: Phase 1 Generation (20 MW), Phase 2 pumped storage facility (80-100 MW), Irrigation and Industrial water supply Strategic importance: energy, water supply, irrigation, flood control Way forward: Completion of Feasibility Study by March, 2014 Competitive process for PPP

Feasibility Study Required Feasibility Study Required Peat power Generation Value of projects: Est. USD 3m per MW Incentives: Nationwide peat assessment exists indicating around 600MW of potential and currently being updated. Study to be finalised March 2015; IPP to be launched thereafter. Seeking investors in both peat mining, power generation or both Way forward: Further feasibility studies Feasibility Study Required Methane power Generation Incentives: Lake Kivu has est. 700MW over 55 years, split equally between Rwanda and DRC 200 MW still available for investment; 5MW and 25MW pilot projects under construction as of September 2014 2 proof of concept sites projects been successfully established Clear management prescriptions on safe operation and maintaining our resource established Way forward: 100 MW tender to be launched as IPP by end of March 2015

Feasibility Study Required Study On-going Geothermal Power Generation Incentives: Up to est. 350 MW of geothermal generation across 4-prospects Exploratory drilling completed at two wells Geothermal Master Plan being developed, ready by February 2015 Way forward: Final ground studies underway as part of Master Plan Resume exploration from February 2015 dependant on Master Plan Feasibility Study Required Solar Power Generation Incentives: Largest utility scale PV plant (8.5MW) in East Africa located in Rwanda Solar Assessment 2013 Looking for further utility PV power from 2015/16 Large off-grid potential available with results based financing program and other government incentives Way forward: Off-grid market assessment study and feasibility studies required

Feasibility Study Required Feasibility Study Required Off-grid: Mini-grids Electrification Feasibility Study Required Incentives: PPA with off-taker guarantees demand and results based finance support International tender launched for 20 sites of up to 1MW in August 2014 Simplified Licensing for Rural Electrification in existence and to be updated by beginning of 2015 Sites identified where grid will not reach within 5 years 70% Electrification target by 2018 through on/off-grid solutions Way forward: Feasibility studies to be Resume exploration from February 2015 dependant on Master Plan Medium Transmission Lines Electrification Feasibility Study Required Incentives: Pre-financing of medium and low voltage construction around the country; which have been identified and committed regional plans: 3000km of MV and 4,900km of LV to connect 230,000 households Construction of 220KV transmission lines (116km) from Bwishyura-Karongi-Kilinda-Kigoma-Rwabusoro-Rilima and substations Way forward: Substation project to be tendered out by end of 2014 Transmission line projects available on a rolling basis

Regional Integration: Investments Feasibility Study Completed Eldoret – Kampala – Kigali Oil Pipeline Feasibility Study Completed Value of projects: Est. USD 1 bn Kampala- Kigali section Incentives: Eldoret – Kamapala feasibility study finished Kampala–Kigali feasibility study completed August 2014 Strong incentive to undertake project for energy security and regional integration Way forward: Envisage PPP model Bidding document ready to be launched before October 2014 Still looking for investors Rusizi III Hydro Power Value of projects: Est. USD 652m Incentives: Strong political drive due to Rwanda, Burundi, DRC partnership Feasibility study completed Mobilization of concessional loans by States. Way forward: Projects Agreements Under negotiation with the Preferred Bidder PPP model Still approachable for external investors

Feasibility Study Required Feasibility Study Required Akanyaru Hydro Power Incentives: International tenders for construction and transmission Regional project between Rwanda, Tanzania and Rwanda with strong political support Way forward: Transmission line tender to be released by 2015 Feasibility study required Still approachable for external investors Feasibility Study Required Rusizi IV Hydro Power Incentives: International tenders for construction and transmission Pre-feasibility study completed Way forward: Fund mobilization for full feasibility study

Feasibility Study Complete Rusumo Falls: Hydro Power Incentives: International tenders for construction and transmission Project Funds already secured for the Power Plant and transmission lines. Way forward: Review of the Power Plant design Preparation of Tender Document for the Power plant Contractor Construction of the power plant and the transmission lines

Housing & Urban Planning Feasibility Study Required www.rha.gov.rw Gahanga Stadium Studies Required Value of projects: Est. USD 100m Incentives: Located in Kigali 60 ha made available by GoR for use 8-10 ha for 40,000 capacity permanent structure stadium Remaining 50 ha for commercial development to increase returns Government to provide basic service infrastructure Way forward: BOT model Detailed design and feasibility study required Feasibility Study Required National Archives Value of projects: Est. USD 1500 per m₂ Incentives: Need for a national archive service due to temporary and inadequate nature of current accommodation. Site identified in Kigali with building size of 12,000 m2 Way forward: Studies to be completed by December 2014, followed by competitive tender PPP model

Feasibility Study Required Affordable Housing Feasibility Study Required Value of projects: Est. USD 35m per 1000 units Incentives: Affordable Housing Development Study by EU found annual demand in Kigali city alone is 30,000 units (186,163 current total need) Feasibility Study to be completed by January 2015 Site servicing basic infrastructure to be provided by government 40 ha on 2 sites has already been made available by government Way forward: Affordable housing management being established in RHA Investment incentives schemes under discussion Affordable Housing Pilot Project Value of projects: Est. USD 4 m Incentives: 8 blocks of accommodation Located in Kicukiro District on 1 ha Architectural design is available and site made available Way forward: PPP model proposed.

Feasibility Study Required Feasibility Study Required Urban Site servicing in 6 secondary cities and Kigali with public infrastructure and utilities Incentives: Promote well managed and distributed economic development Government focus on creating ‘secondary cities’ with Master Plans ready and detailed roadmaps underway Way forward: 163km road grading implemented so far, and more is required PPP model Studies required Increase of local production of construction materials Incentives: Industries required to feed Affordable Housing and Secondary Cities projects and cater to strong growth in economy and population Mapping of national raw materials underway East & West, expertise required for mapping Variety of local industries required: construction machine parks, quarries (stone, sand, lime etc), wall material production (panels, strawtech, aerated concrete blocks, pre-fab concrete, burnt bricks, glass insulation etc) Way forward: Strawtech panel factory under development PPP models and private models Studies required Feasibility Study Required

Feasibility Study On-going Feasibility Study Required Ministerial Office Complex Feasibility Study On-going Value of projects: Est. $1500 per m₂ Incentives: Construction of government building for 5 ministries and their agencies, this is due to high rental costs at present Capacity of 42,000 m2 (and scope for enlargement) 2 potential sites already identified in Kigali Way forward: Feasibility study on-going Architecture design to be updated depending on site chosen PPP model Feasibility Study Required Kigali Central Business District Incentives: 7 plots of 1 -2 acres available for buildings up to 15 stories Sites well planned with service infrastructure Plots for sale for development at approx. USD 100 per m₂ Attractive plots in strong commercial area Way forward: Detailed development guidelines available Detailed designs required, standard contracts

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Energy Sector Profile www.reg.rw Progress and Key statistics Increase in electricity connections: From 6% in 2008 to 22% August 2014 Steady increase in generation: 119.6MW August 2014 Electricity Generation: 59% Hydro, 40% Thermal, 1% Methane and other. Regional generation: Hydro power, geothermal exploration Regional interconnections: Developing Uganda-Kenya-Ethiopia lines Biomass consumption: Reduced form 99% population in 2000 to 85% in 2013 Schools and health clinics with electricity access: 64% and 100% CFL Distribution: 800,000 distributed Average tariffs: $0.22c/KwH for industry and $0.21c for other consumers Targets to be met by 2018 Electricity Access: 70% households Grid capacity (domestic + imports): 563MW Regional Connections: Uganda and Kenya 2016, Ethiopia 2017 Biomass consumption: 85% to 50% Schools and health centres: 100% Investment Facilitation Power Purchase Agreements (PPAs): 25 years as minimum Independent Power Purchase Agreements (IPPs) as standard Public Private Partnership (PPPs) experience: Draft PPP Law and Policy Renewable Energy Feed-in-Tariff (REFIT): For hydro 50KW to 10MW Long use of Engineering, Procurement and Construction (EPC)