The vision for PEACE Power & Light begins in rural Rwanda, where the people rebuild after a period of genocide and insecurity. In many ways, the story of Rwanda is remarkable for the progress regarding peace and development which has followed the darkest of times in 1994. Churches and missionary organizations are working together with the government and international community to achieve a partnership with a holistic vision for growth and development.

Based on Rick Warren’s PEACE plan, PEACE Power & Light—Rwanda is poised to

• Promote reconciliation
• Equip servant leaders
• Assist the poor
• Care for the sick
• Educate the next generation

With these broad goals in mind, PEACE Power & Light is focused on a number of achievable tasks in rural Northwest Rwanda. Here, missionaries Drs. Caleb and Louise King and family have been working since 1999, and have lived on site at Shyira Hospital since 2003. The restoration of the hospital, which was nearly destroyed in the insecurity following the 1994 genocide, was one of the first acts of hope in this hurting region. The hospital is now flourishing, with a staff of 150 on site, and an additional 250 in 15 health centers and 5 health posts in the northwestern District of Nyabihu. Here, the potential for partnership has been amply demonstrated. The hospital is one of the many works of outreach of the Anglican Church of Rwanda’s Shyira Diocese, and now newly formed Kivu Diocese. Here the Dioceses have worked in concert with the federal, district and local governments, with assistance from international agencies such as George Bush’s PEPFAR programs (President’s Emerging Program for AIDS Relief) via Columbia University’s ICAP (International Center for AIDS care and Treatment Program) and UNC’s IntraHealth, UNICEF, the Global Fund and others.

Among the greatest impediments to development in this region is the lack of electricity. The national electric utility is producing power on the margin using leased German diesel generators. The cost of fuel is so high, that further rural electrification is impractical. Some old hydroelectric plants exist, still in service after more than 50 years, but their output is insufficient to meet all demand. Similarly, a pilot project for methane extraction from Lake Kivu, while helpful, will not meet all the growing demand.

Environmentally friendly relatively small-scale hydroelectric plants may be among the best solutions for the country’s growing electric needs. In the region surrounding Shyira Hospital one site is currently under construction which will produce 400 KW power, and another nearby may be developed with capacity of 2 MW, with possible eventual expansion to 4 MW. Other nearby sites could permit the production of 20 MW in the region. This local production may be linked to an associated rural electric grid which may begin to meet needs for rural electrification. The benefits of these developments are multiple. Rural electrification is doubtless the most important step in rural development. The development of a business to develop the power is another essential step in rural development. Following the lead of many around the world who are considering business as mission, the creation of responsible, for-profit businesses, built on Christian principles, may be among the most fruitful and stabilizing long-term initiatives. The example of excellent businesses will complement the more specifically charitable objectives of the PEACE plan. Finally, there are opportunities for synergy, where some funds for the PEACE plan are invested in local businesses to produce long-term revenues for sustainable interventions.

In the short-term, PEACE Power & Light—Rwanda will focus on a number of sustainable initiatives, in the domains of health, education, and energy production. In every case, the projects will be carried out in concert with the local churches, with ancillary goals of environmental stewardship and spiritual outreach. These goals may be accomplished with the financial and technical assistance of interested individuals in the U.S. and elsewhere. In every project, PP&L will seek partnership among those overseas and in Rwanda, between public and private sectors, among the church institutions. As the projects advance, the breadth of initiatives may increase, and it may be possible to consider work in other regions or countries.

Given its difficulty meeting current demand, the national regulated utility Electrogaz has little incentive to develop additional rural demand. Its priority must be meeting current urban and industrial needs at reasonable costs. In addition, the management of rural grids requires flexibility and community involvement. SOGEMR Sarl., a small, locally run enterprise, has been working in cooperation with Shyira Hospital to foster its mission of service to the surrounding community by developing local sites for hydroelectric power production. This corporate entity is set to be transformed into AMAHORO ENERGY S.A. in order to facilitate management and allow increased local participation by small investors.

A Closer Look at Current Project Opportunities

• 400 KW plant on the Gaseke tributary of the Mukungwa River 15 km south of Ruhengeri and 8 km north of Shyira Hospital, currently under construction
• $1.5 million total investment
• $490,000 GTZ grant
• $230,000 shareholder investment
• Loans of $740,000 ($340,000 secured; $440,000 remaining to be financed)
• 2 MW plant on the Mukungwa River half way between Ruhengeri and Shyira Hospital
• $3 million initial investment (less per MW than above because of site and fixed costs (including Electrogaz connection) already covered by the development of SOGEMR for the first project)
• Subsequent investment in additional capacity as possible by available flows, increasing to 3 to 5 MW
• Further investments in distribution grid could be financed out of sales to Electrogaz grid
• 3 MW plant on the Giciye River, 3 km east of the hospital
• $7 million investment
• Potential to refurbish to existing sites (Nyamotsi I and II to increase power production and link to national grid)
• Potential for two other sites on the Mukungwa River not currently listed in the BTC Hydropower Atlas
• 1 MW site at Satinsyi tributary of the Mukungwa River
• 1 MW site on Ruhagabaga tributary of the Mukungwa River
• Additional sites possible on other local tributaries
• No persons displaced - no resettlement required
• All water returned to same downstream source - minimal environmental impact
• Portion of retained earnings to be managed for
• Grid expansion
• Fostering local enterprise

PEACE Power & Light may be one of the investors in Amahoro Energy, S.A. In this case, all revenues from PP&L’s share of profits to be directed to surrounding communities including:

• Health development including HIV/AIDS care, community health outreach, and care of rural poor
• Education
• Care of vulnerable populations
• Surrounding community economic development

Rwandan Government Issues

• Ministry of Infrastructure (MININFRA) is closely involved in development of sites
• Regulations involving public or private sale of energy to Electrogaz have been developed, including price of 70 RWF = 13¢ per KWh wholesale.
• A new agency, RURA, is now to take over such negotiations in order to avoid potential conflicts of interests (Electrogaz negotiating its own rates). MININFRA leaders have discussed a goal rate of return of 20% for investments, but the total ROI to the individual investor may be higher because of the leverage of investments using borrowed funds from the U.S. at favorable rates.

Philanthropic Investment: “PEACE Power & Light (PP&L)”

Contributions to PEACE Power & Light—Rwanda may be directly designated for specific projects. These include programs for handicapped children, assistance for orphan education, help for those with chronic illnesses like diabetes, and capital projects at Shyira Hospital and surrounding schools, including biogas production, solar hot water, Internet access and information technology enhancement. In addition, contributors may designate funds for investment in Amahoro Energy, S.A.

An overseas investor, for example, might not be interested in purchasing personal equity in AmEn, S.A., but may contribute funds to enable an investment on behalf of PP&L. For instance, a contribution of $1,000 might cost the donor, depending on marginal federal and state income tax rates, on the order of $600. This $1000 would be pooled with other contributions to make up a significant portion of AmEn, S.A.’s total equity. If these investments provide a 20% return per year, then a donation which cost the donor, in this case, $600 would produce an annual yield of $200 as long as the project remained (hydropower plants may have a project life >50years). The annual dividends could then be used to subsidize the projects of PEACE Power & Light (PP&L) in a sustainable fashion. In effect, PP&L would be one of the investors in Amahoro Energy and, like other investors, would have an interest in the company’s profitability. The retained earnings would be distributed according to the directives of the board of PP&L, with the goal of helping, in particular, the population near the power sites.

Investment Structure

The proposed sites may be developed with a combination of private and philanthropic investment. As an example, the following investment structure is proposed:

• Investor capital: (e.g. 1/3 US capital, 1/3 philanthropic investment, 1/3 Rwandan investors)
• Grants from GTZ/EU
• Commercial loans, including subsidized loans, e.g. OPIC

The advantage of the above-proposed structure is that each group complements the other for the social good of the projects. The US investors help organize the project financing at interest rates unattainable in the local capital market. The Rwandan investors (these include Shyira Hospital, which as a consumer of the power and also a neighbor has a vested interest which will help ensure stability) provide more oversight given their proximity to the investment, ensure long-term stability, and enhance negotiations for regulation, rates, etc. The philanthropic investment provides long-term returns for sustainable regional assistance.