By Richard Adorsu-
NEW AFRICA BUSINESS NEWS (NABN) Accra Ghana- Rwanda launched the GasMeth Compressed Natural Gas project in Lake Kivu. In attendance was delegates from the African Export-Import Bank (Afreximbank). The project, being developed by Gasmeth Energy Limited, has the capacity to rapidly transform the industrial and trade landscape of Rwanda and the broader East African sub-region.
Afreximbank’s involvement in the project dates back to 2020, when the Bank approved a project preparation facility in favour of GasMeth Energy Limited. This facility crucial and its rapid progression to bankability. In addition, Afreximbank has been appointed as the project’s Mandated Lead Arranger and will lead the syndication of the debt
finance estimated at more than US$300 million.
Upon its completion, the GasMeth Compressed Natural Gas project will enhance the competitiveness of Rwanda across various sectors, as well as reinforcing the country’s energy security and reducing its exposure to external risks and volatility, while creating thousands of quality jobs.
Moreover, the project constitutes a key element on Rwanda’s promotion of a just energy transition, in which air quality is improved and deforestation – accelerated by use of wood and charcoal as a cooking fuel – is drastically reduced. Fundamentally, this project will assist Rwanda and the wider sub-region to capitalize on the opportunities arising from the African Continental Free Trade Area.
Mr. Kudakwashe Matereke, Afreximbank Regional Chief Operating Officer for East Africa, commented: “We are delighted to have contributed to the ongoing development of this pivotal infrastructure project – which promises benefits not only to Rwanda but to its sovereign neighbours, stimulating as it does the indsutrialisation of the region whilst helping to reduce Rwanda’s carbon emissions. The Bank looks forward to syndicating the debt finance as the
company moves into the project implementation stage.”
Responding to the development, Mrs. Kanayo Awani, Executive Vice President, Intra-Africa Trade Bank at Afreximbank commented: “The success of Afreximbank’s involvement in this process demonstrates how the Bank’s Project Preparation Facility can be deployed to support projects in both the public and private sectors in member countries, and cultivate private sector interest in ventures which serve to advance the economic and social infrastructure of the African countries.”
Mr. Stephen Tierney, Group CEO GasMeth, commented: “We would like to thank our financing partners, gas customers, contractors and our Karongi community hosts for attending the groundbreaking ceremony. We are delighted the day turned out a success and has continued to receive such strong support from all areas within the Government of Rwanda. We look forward to working closely with our main partner Afreximbank in the coming weeks to transition this project into construction and bring it to reality. Our belief in delivering this project and the
transformational, economic, environmental and social benefits has never been stronger.”
For New Africa Business News Richard Adorsu Reports, Africa Correspondent