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The electricity sector suffers a budget deficit
- REG sees Rwf23 billion reduction from previous year
- Weiss seeks additional funding
The Chief Executive Officer (CEO) Rwanda Energy Group (REG) Ron Weiss has expressed dismay at the budgetary allocation to the energy sector for 2021/2022. He made this known at the virtual Parliamentary meeting with the members of the Rwandan Parliament.
Speaking at the meeting on National Budget and Patrimony, Mr. Weiss said the 2021/2022 allocation for the REG is down by Rwf23 billion from last year’s allocation of Rwf124 billion. REG consists of two energy companies, Energy Development Corporation Limited (EDCL) and Energy Utility Corporation Limited (EUCL). The allocation covers all expenditure of the EDCL and EUCL including electricity generation and transmission, and staff salaries.
Responding to the issues raised by Mr. Weiss, the Director-General of National Budget at the Ministry of Finance and Economic Planning, Rehema Namutebi, noted the funding challenges were due to the impact of the COVID19 pandemic. She urged the REG to seek other funding sources for critical projects.
The Rwandan government under the National Strategy for Transformation (NST) plans to increase energy access to 100% from the current 60.9%.