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AfDB, AGTF approve $171m loan for Rwanda water supply and sanitation project

The African Development Bank Group (AfDB) and Africa Growing Together Fund (AGTF) have agreed to provide $171m loan for the development of sustainable water supply and sanitation program in Rwanda.

For the program, AfDB will provide $121.137m and AGTF will contribute $50m. The entire project will cost $262m and the loan from AfDB and AGTF will meet about 65.24% of the cost.

The European Investment Bank (EIB) will contribute 19.25% or €45m for the project while the Government of Rwanda will provide 15.51% or $40.687m of the project.

After the completion of the project, it will provide adequate, reliable and sustainable water and sanitation services for people living in the Rwandan city of Kigali and satellite towns such as Rubavu, Rusizi, Nyagatare, Muhanga, Huye, Musanze and Karongi.

About 1.1 million people are expected to be benefited from the water supply services while 475,000 can now have better access to sanitation.

This program is part of the country’s Vision 2020 which focuses on investing in affordable and environmentally sustainable infrastructure, water and sanitation services as the key drivers and enablers of economic transformation and rural development.

Rwanda has plans to increase water supply access by 100% and sanitation access by 58.3% through its second Economic Development and Poverty Reduction Strategy (EDPRS II).

According to AfDB, the program also fits with its Country Strategy Paper (CSP) 2017–2021 for Rwanda to invest in energy and water infrastructure for inclusive development.

The program will also help in improving quality of life in the country which has been highlighted by AfDB’s Ten Year Strategy between 2013 and 2022.