The Kigali Green City project has received its first capital injection from the German Government through KFW Development Bank worth €10 million (Approximately Rwf 10 billion).

The German envoy to Rwanda Thomas Kurz and the Minister of Finance and Economic Planning Uzziel Ndagijimana signed an agreement approving the financing on Friday 31st January.

This is Germany’s first capital injection into the venture with another €20 million expected in the coming days.

The Green City Kigali is a model green city to be developed on 620ha in Kinyinya Sector, Gasabo District at an estimated $1.5 billion.

The model city will be a pilot project in green urbanization and will serve to establish the viability of green cities in Rwanda and possible replication across the country.

The first phase of the project set to kick off this year will see the construction of 1,749 house units on 18 hectares with an estimated cost of US$ 103.8 million for five years.

The Rwf 10 billion invested and the anticipated Rwf 20 billion will go into the financing of the enabling infrastructure such as the construction of roads, electricity, and water and sanitation supply network, Ndagijimana said.

The grant agreement will support the Sustainable Urban Development in Rwanda project, a City of Kigali flagship project that will be developed on 600 Hectares in Kinyinya sector. Courtesy.

This is, among other things, expected to catalyse private sector investment as well as ensure the affordability of houses in the Green city.

The Minister said that a team of architects had been contracted to develop the plan for the city and were expected to deliver by June this year making way for the commencement of implementation. The feasibility studies have since been completed.

The minister said that there will be multiple opportunities for private sector investment in the project in multiple aspects including the construction of housing, infrastructure as well as amenities.

The German envoy said that the strong partnership in planning and implementing the sustainable and innovative neighborhood in Kigali would achieve objectives including providing affordable housing, job creation and serve as a proof of concept.

The project is the result of collaboration among various institutions such as the Ministry of Environment, Rwanda Environment Management Authority, Ministry of Infrastructure, City of Kigali, Rwanda Social Security Board.

Rwanda Green Fund (FONERWA) is leading the implementation with support from Germany and the Green Growth Institute.

The project is expected to feature green aspects, such as natural light, integration into housing, renewable energy such as solar energy, rainwater harvesting, wastewater management, recycling and reuse of water and non-motorised transport among others.