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Government of Rwanda and OFID sign US$ 20 million for water and sanitation

Posted : 13.03.2018

Kigali, March 12, 2018: The Government of Rwanda and the OPEC Fund for International Development (OFID) today signed a financing agreement worth US$ 20 Million (Approximately Frw 17 billion) to support the water and sanitation project.

The OFID funds will support the rehabilitation, upgrading and extension of the water supply network in Kigali and suburban areas, upgrading of Nzove water treatment plant, construction and rehabilitation of Gihira II water treatment plant and rehabilitation and extension of water supply distribution networks in Musanze, Rubavu, Muhanga, Nyagatare, Huye and Rusizi.

The support will also focus on the rehabilitation and upgrading of semi-centralized sewerage systems in Kigali, and the construction of a centralized sewerage system for Kigali and installation of sewers in the existing buildings in targeted areas. The project will be implemented by Water and Sanitation Corporation (WASAC).

Speaking after the signing event, the Minister of Finance and Economic Planning Claver Gatete noted: “The project will ensure equitable provision of adequate, reliable and sustainable water and sanitation services for the population in the target areas, thereby contributing to an improved quality of life. Cooperation with OFID is strategic and in line with Rwanda’s vision. We look forward continued cooperation”

The Director General of OFID Mr. Suleiman J. Al-Herbish said: Upon completion, this programme is expected to have positive impact on the population which would to Sustainable Development Goals beyond those related to water supply and sanitation. This support is consistent with OFID’s commitment to support the country’s economic development and poverty reduction strategy, which places great emphasis on scaling up investments in reliable, affordable and environmentally sustainable infrastructure.”

The entire water and sanitation Program cost is estimated at US$ 262.32 million, where the African Development Bank (ADB) has approved a loan of US$ 171.14 million. Other financiers are European Investment Bank which contributed EUR 45 million (approximately USD 50milion) and the Government of Rwanda contributing USD 20.68m. The project will be implemented over a period of 48 months.

The OFID has financed different infrastructure projects for public sector in energy, transport (roads), and water and sanitation to a tune of USD 182 Million. In addition, OFID is strongly involved in private sector financing where it has provided two different lines of credit of about US$ 25 million to Bank of Kigali and more recently US$ 30 million to the Bugesera International Airport.


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