Minister of Finance and Economic planning signing the agreement with Director of European Investment Bank
20th February Kigali- Residents of Kigali City are set to benefit from the country’s first wastewater treatment plant and public sewerage network after Government of Rwanda and the European Investment Bank (EIB) signed a loan agreement to build Kigali centralised sewerage system.
EIB, the long-term lending institution of the European Union will ratify the 25-year EUR 45 million (approximately Frw 73 billion) loan to finance sewerage and wastewater project.
The EUR 96 million project is financed by the EIB alongside African Development Bank and the Government of Rwanda who will contribute Euro 43 million and EUR 8 million respectively.
“Kigali is one of the fastest growing cities in Africa and investment in water and sanitation is crucial to improve health and reduce pollution. The Government of Rwanda welcomes the backing for the European Investment Bank and other international partners for the Kigali Centralized Sewerage project. The EIB has played a key role in supporting the technical, economic and environmental studies essential for the successful design of this scheme. Today I am pleased to sign the EUR 45 million loan agreement with the EIB that will support construction of the first public sewerage network in our capital city.” said Claver Gatete, Rwandan Minister of Finance and Economic Planning.
“Visionary new investment to transform wastewater here in Kigali will benefit Rwanda and Rwandans in years ahead. Construction of Kigali’s first wastewater network and treatment plant will improve health, reduce pollution and carbon emissions, as well as make Kigali an even better place to live and work. The European Investment Bank recognises the crucial importance of this project for Rwanda’s capital and we are pleased to provide our largest ever loan in Rwanda to support the scheme. By ensuring that the project can cater for growing demand and a growing city this scheme sets a benchmark that other world cities are already following closely.” said Maria Shaw-Barragan, Director of the European Investment Bank.
Chief Executive Officer of Water and Sanitation Corporation Ltd (WASAC) signing the agreement as a the implementer of the Kigali Centralised Sewerage System
“The European Union recognises the importance of new investment in wastewater to achieve sustainable development goals. Collaboration between Rwandan and European colleagues over recent years has enabled the preparation and design of this truly life changing investment. The loan being signed today represents the largest ever engagement by the European Investment Bank, the Bank of the European Union, in Rwanda. This is a key project in the history of the city of Kigali that will benefit thousands of residents in the years ahead.” said Ambassador, Nicola Bellomo, Ambassador of the European Union to Rwanda.
The signing of the financing agreement was witnessed by senior government officials, Hon. Minister of State in charge of Energy and Water. representatives of the Water and Sanitation Corporation (WASAC Ltd) and Ambassador Nicola Bellomo, Head of the European Union Delegation to Rwanda.
This is the largest financing by European Investment Bank in Rwanda
Largest ever EIB financing in Rwanda
The EIB’s support for wastewater investment in Kigali represents the largest ever financing by the European Investment Bank in Rwanda in 40 years of operations in the country and the first support for public sector investment since 2000. The European Investment Bank is the world’s largest international public bank and the largest lender for water investment worldwide.
Significant public health, pollution and economic benefits expected
Once operational the first sewerage network and wastewater treatment plant in Kigali will significantly improve public health through a reduction of waterborne diseases and reduce pollution in the Nyabarongo and Akagera rivers and Lake Victoria. Improving wastewater infrastructure in the city will also enhance attractiveness of the city for companies.
Detailed technical and feasibility studies carried out by the EIB over the last three years will ensure that the scheme can be strengthened in the future. The wastewater treatment plant will be able to be expanded to cater for additional demand and the new sewerage network planned to minimise disruption of existing road and urban infrastructure by future expansion.