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Rural Development receives RwF 5.5 billion boost

Posted : 27.04.2015

The Government of Rwanda and the Federal Republic of Germany yesterday signed a bilateral agreement worth € 7 million (approximately US$ 7.9 million or RwF 5.5 billion). The bilateral agreement which is in form of grant will support decentralization and good governance.

According to the agreement on decentralization and good governance the € 7 million will be allocated under the Local Administrative Entities Development Agency (LODA), formerly known as Rwanda Local Development Support Fund (RLDSF). The funds will finance income generation and economic infrastructure such as schools, feeder roads and markets. Projects to be undertaken will be based on priorities stipulated in district development plans.

In line with Government Decentralization Policies and Strategies, districts will be allowed to implement local priorities, thus making them more responsive to specific local needs and enhance local accountability.

The funds will also finance institutional support at the level of LODA mainly in the areas of project preparation and planning, monitoring and evaluation and development of a citizen feedback mechanism. 

The Minister of Finance and Economic Planning Claver Gatete said: “This grant will not only support rural development and create employment opportunities; it will help to tackle effects of climate change. It is in line with rural development priorities as stipulated in the EDPRS2.” 

The Permanent secretary of the Ministry of Local Government Vincent Munyeshyaka noted that the support will fund infrastructure projects at the district level and capacity building at LODA. 

The Germany Ambassador to Rwanda Peter Fahrenholtz said: “This Agreement underlines the long-standing and proven cooperation between our two countries based on friendship and mutual trust. Germany is committed to support local development.”

The Federal Republic of Germany under its development organization KfW has been supporting decentralization through local infrastructure investments since 2006 and has financed individual projects such as schools, health centers, electrification, roads and bridges, modern markets and terracing among others worth € 34 million to date.




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