Efforts to enhance decentralisation and capacity building have gained momentum, thanks to a financial deal signed yesterday between government and the Kingdom of Belgium in Kigali.

According to the agreement, the European country will channel Euro13.5m (about Rwf12 billion) grant toward strengthening institutions through capacity building for local governments.

"The objective of the programme is to sustainably enhance the capacity of local governments to deliver services and to support an enabling environment for local economic development in respect of best governance practices,” Finance and Economic Planning minister Claver Gatete said during the signing ceremony.

The support is part of Euro 160 million five-year Indicative Cooperation Programme signed in 2011 between Belgium and Rwanda.

Through the programme, Euro 28 million will be allocated to decentralisation, Euro 55 million to health and Euro 77 million to the energy sector.

Gatete also revealed that under the Euro 28 million decentralisation package, Euro 14.5 million will go toward supporting the implementation of District Development Plans, while the balance will focus on strengthening capacity building.

Capacity development will be delivered through supporting and strengthening existing capacity building strategies of the sector institutions combined with a mixture of long and short term technical assistance interventions.

"Decentralisation has been a key policy of government since May 2000 when the National Decentralisation Policy was adopted,” Gatete said.

"We are currently implementing the third phase of decentralisation (2011 to 2015), which focuses on consolidating past achievements in governance and service delivery, and on scaling up local economic development.”

Arnout Pauwels, the Belgian ambassador to Rwanda, said decentralisation process should be considered a key priority for sustainable economic development and poverty reduction.

"It is the way forward to rebuild trust and give local communities greater voice. Legal framework, policy, and strategies have been regularly adapted, developed and implemented to respond efficiently to the evolving challenges of effective service delivery and local economic development,” Pauwels said.

Half of the fund in yesterday’s deal will also be channelled toward creating an enabling environment to support local economic development, he added.

Earlier this year, Belgium gave Euro 22 million (about Rwf20 billion) to help connect more than 21,000 households in Gatsibo, Kayonza and Kirehe districts to electricity grid.

As part of decentralisation programme, government targets to boost access to services at the district level. The services include rural electrification, infrastructure development, among many areas.”