AfDB board approves $171 million loan

The African Development Bank has recently approved a combined loan of $171 million to aid Rwanda's Sustainable Water Supply and Sanitation Program.

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AfDB

The Board of Directors of the African Development Bank Group (AfDB) has approved two loans amounting to $171 million to finance Rwanda’s Sustainable Water Supply and Sanitation Programme.

It is designed to improve the quality of life and socio-economic development of the country by ensuring equitable provision of adequate, reliable and sustainable water and sanitation services for targeted cities with a view to promote economic growth and transformation.

Under the programme, water supply and sanitation infrastructure and services will be provided in Kigali and satellite towns of Rubavu, Rusizi, Nyagatare, Muhanga, Huye, Musanze and Karongi. An estimated 1.1 million people are expected to benefit from improved water supply services while 475 000 others will have access to better sanitation.

The programme tallies with Rwanda’s Vision 2020, which envisions scaling up investments in reliable, affordable and environmentally sustainable infrastructure and water and sanitation services as key drivers and enablers of economic transformation and rural development. The country’s second Economic Development and Poverty Reduction Strategy (EDPRS II) planned to increase access to improved water supply and sanitation to 100% and 58.3%, respectively.

It also fits with the bank’s Country Strategy Paper (CSP) 2017–2021 for Rwanda with regards to investing in energy and water infrastructure to foster inclusive and green growth. By providing sustainable and affordable water and sanitation services, the programme will help accelerate development and improve the quality of life of the people as espoused by the Bank’s High 5 priorities under the Ten Year Strategy, 2013-2022.

The programme will be implemented in two years from January 2018 at a total cost of $262-million. The AfDB $121.137 million loan and $50 million Africa Growing Together Fund (AGTF) loan account for 65.24% of the total cost. The European Investment Bank (EIB) and the Government of Rwanda will contribute 19.25% (EUR 45.000-million) and 15.51% ($40 687 million), respectively.