Rwandan government secures US $255.14m to support water supply

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The ministry of Finance and Economic Planning, on behalf of the Rwandan government has signed two financing agreements worth US $255.14m with the African Development Bank (AfDB). The money will fund water supply and business development programs in the country.

In the deal, US $171m will support Rwanda Sustainable Water Supply and Sanitation Program. The remaining US $84m will promote Skills and Business Development Program.

Finance and Economic Planning minister Claver Gatete said the US $171m support is in line with the country’s vision, to scale up investments in reliable and environmentally sustainable infrastructure which will also include water and sanitation services.

The program targets to improve water supply infrastructure and services and also sanitation infrastructure. It will also keep in check the institutional capacity of Water and Sanitation Corporation. It will cover Kigali and the secondary cities of Rubavu, Rusizi, Nyagatare, Muhanga, Huye, Musanze and Karongi.

Approximately 1m people will benefit from improved water supply services while 475,000 people will have access to better sanitation services. This is according to Gabriel Negatu, the director-general of AfDB’s East Africa Regional Development and Business Delivery office.

WASAC chief executive Aime Muzola said the loan will help in rehabilitation, upgrading and extension of water supply and distribution networks. He further added that it will service the rehabilitation and upgrade of timeworn water supply and distribution systems. Mr. Muzola also spoke of targeting expansion of Gihira II Water Treatment Plant and Nzove Water Treatment Plant.

Also read: Universal access to water in Rwanda to become a reality

The projects’ implementation

Gatete said the US $171m package will be paid back in 25 years. This is with a grace period of eight years at an interest of 2.3%. On the other hand, the US $84m will be paid in 35 years with a grace period of five years at an interest rate of 0.75%.