| Project Detail |
On December 19, 2024, The Multilateral Investment Guarantee Agency (“MIGA”) a member of the World Bank Group, issued a Breach of Contract Guarantee (BoC) to Virunga Power Holdings Limited (Mauritius) (doing business as Anzana Electric Group) for their equity, and quasi-equity investment into Weza Power (Burundi) for the preliminary development activities - referred to as “Phase A” (“the Project”) in connection with the planned expansion, rehabilitation, maintenance, densification, marketing and operation of the low and medium voltage network in Burundi. MIGA’s guarantee covers an amount of USD 10.9 million against the risks of Breach of Contract for a period of up to 3 years.
Phase A activities are limited to feasibility studies and technical design of the distribution network, environmental and social related studies, application for authorizations and permits, establishment of the Project Enterprise (Weza Power), drafting and negotiating of pilot project agreements, fundraising for pilot project, early procurement of materials (poles, wires, transformers, meters, etc.) and any other development activity necessary to prepare and enable the commencement of construction. The results of the preliminary development activities will support the design of a bankable pilot project (“Phase B”) consistent with MIGA’s performance standards and international standards of best practice. The scope of the future pilot is to rehabilitate part of the existing grid (specifically outside of the main urban), and to extend the distribution network to an additional 45,000 households and businesses in four selected rural areas. Phase B is currently out of scope of this Project and will be separately underwritten.
Development Impact
The Project is expected to contribute to advancing the Government of Burundi’s rural electrification strategy through knowledge development and policy advise. MIGA’s involvement also supports innovation in Burundi’s electricity distribution sector offerings and technology transfer. MIGA’s guarantee unlocks private venture capital for a pioneering and transformative initiative for rural electrification of Burundi. The Project is aligned with the Burundi Country Partnership Framework (FY19-23) objectives of increasing access to energy for poor families and seeking opportunities to crowd in private investment and PPP via a One WBG approach. The project will make a significant contribution to the Mission 300, an ambitious partnership between the World Bank Group and the African Development Bank to connect 300 million people to electricity in Sub-Saharan Africa by 2030. |
