Rwanda Wednesday secured a concessional loan of $20 million (about Rwf18 billion) to boost supply of water as well as scale up sanitation programmes.
The loan, from OPEC Fund for International Development (OFID), is expected to contribute to the construction of two water supply systems to cater for the districts of Muhanga, Kamonyi, Ruhango and Nyanza.
Dr Claudine Uwera, the Minister of State in charge of Economic Planning, told the media in Kigali that the 20-year loan has an annual interest rate of 1.25 per cent.
The Government has been given a grace period of five years before it starts paying the debt.
Officials pose for a group photo after signing the MoU yesterday
This financing, signed yesterday in Kigali, is for phase two of the project, which is jointly funded by the African Development Bank, European Investment Bank and the government of Rwanda.
Phase one of the project was $282.318 million, while phase two will cost €135.7 million
Uwera said that the additional financing will boost water supply infrastructure in the four districts, mostly in areas with low access.
Minister of State of Finance and Economic Planning Dr Claudine Uwera, Director General of OPEC Dr Abudulhamid Al-khalifa exchange documents after signing the agreement in Kigali on September 25 2019.Craish Bahizi
"This financing is coming to support Government of Rwanda’s efforts and commitment to achieving universal access to water and sanitation services by 2024,” Uwera said.
In addition, OFID is involved in private sector financing where it has provided two different lines of credits of $25 million to Bank of Kigali, she said.
Dr Abdulhamid Al-Khalifa, Director General, OPEC Fund for International Development (OFID), commended the Government of Rwanda for its discipline and good performance in its development objectives.
Officials give some clarifications to journalists during the signing ceremony event at MINECOFIN yesterday
"The cooperation between OPEC Fund and the government of Rwanda is not new. This development journey is a long-term journey,” he stated. "And we are happy that the assistance provided to Rwanda is delivering the results as expected.”
Aimé Muzola, the chief executive of Water and Sanitation Corporation (WASAC), said the two water supply projects will increase access to clean water in rural Rwanda, and is expected to impact lives of some 1.6 million people.
"But, besides these two projects, the Government is putting in a lot of efforts in several other water projects countrywide,” he noted.
The Government pledged to ensure universal access to water by 2024.
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