Shareholders Controllers Appraise Rusumo Project
RPCL Board of Directors requested the Supreme Audit Institutions (SAIs) of Republic of Burundi, Republic of Rwanda and United Republic of Tanzania to carry out a compliance and technical audit of the Regional Rusumo Falls Hydroelectric Project (RRFHP) for the period from 24th January 2014 up to 30th June 2021.
The Shareholders’ Auditors responded positively and constituted the Audit Commission made of auditors representing Project’s shareholders and chaired by the SAI Rwanda on this particular assignment with unanimity. The Audit exercise was led by the State Inspector General of Republic of Burundi, Ms. Generose Kiyago, the Rwanda Auditor General of State Finances, Mr. Obadiah R. Biraro and the Controller and Auditor General of United Republic of Tanzania, Mr. Charles E. Kichere.
This activity commenced in August 2021 and had just been concluded 30th September 2021. The Audit Commission revised the implementation of procurements and the provision of supervision services of the construction of the Generation Facility and the construction of the Generation Facility.
The audit was conducted in accordance with the International Standards of Supreme Audit Institutions (ISSAIs), in complying with ethical requirements and obtained reasonable assurance that Rusumo Project complied with the laws and regulations, and its operations are in line with realization of value for money requirements. Auditors General reached out all Project sites including social development sub-projects funded under Resettlement Action Plan and the Local Area Development Plan in the three shareholder countries.
The shareholding countries agreed to jointly develop the 80MW Regional Rusumo Hydroelectric Plant with 340 million US Dollars funds comprising of loan and grant from the World Bank.
The African Development Bank (AfDB) has accepted to finance the construction of 220 KV transmission lines from the Switchyard to the electricity grids of Burundi (at Gitega- 161 km), Rwanda (at Birembo/Shango-119 km) and Tanzania (at Nyakanazi- 98.2 km); Substations in Muyinga and Gitega for Burundi, Birembo and Bugesera for Rwanda, and Nyakanazi for Tanzania.
The Audit Commission noted that the project reports that it is at 81.4 % of completion and with sufficient balance of about USD 146 million (43%) out of the committed funds of USD 340 million to complete pending activities to provide 80MW of the electricity expected through the project.
Key Messages from the three Auditors General (AGs) The AGs raised serious concerns over the progress of the Project whereby the Project owner expect it to be completed by end of this physical year. The Audit Commission advised all Project’s key stakeholders including shareholding countries, the World Bank, RPCL and NELSAP-CU to review the combined schedule of CP1 and CP2 contractors for proper monitoring towards completion. This will also enable project management to ensure that available financial resources which are considered adequate at the moment not to be eroded because of delayed completion of the scheduled activities and the overall project.
