AfDB and Rwanda Sign US$25 Million Grant Agreements for Rural Water Supply Project

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Tunis, September 18, 2009 – The African Development Bank (AfDB) Group and Rwanda, on Thursday, 10 September 2009 in Kigali, signed two grant agreements of UA 16 million (US$ 25 million) to finance the second phase of Rwanda’s Rural Drinking Water Supply and Sanitation Sub-Program (PNEAR II) for the period 2009-2012.

The country’s Finance and Economic Planning Minister, James Musoni, and the AfDB Resident Representative, Diko Jacob Mukete, signed the agreement at the finance ministry in Kigali. The water and energy Minister of State, Albert Butare, also attended the signing ceremony.

Speaking during the event, Mr. Musoni expressed the gratitude of the government and people for the excellent bilateral cooperation with the Bank and hailed the AfDB’s continuous contribution to efforts to achieve the Millennium Development Goals and the country’s vision 2020.

Mr. Mukete, for his part, said that the grants for the second phase, which increased by 20 percent from PNEAR I, will help provide rural communities with sustainable drinking water supply and sanitation services.

He added that the grants were in line with the country’s Economic Development and Poverty Reduction Strategy (EDPRS) national targets of 86% access for water supply and sanitation coverage of 65%. They are consistent with the Bank’s vision and its Medium-term Strategy, designed to support government poverty reduction policies.

The PNEAR I program has helped increase the number of people who have access to water from 64% in 2005 to 86% in 2008 and sanitation facilities from 38% in 2005 to 65% in 2008. PNEAR II is expected to improve drinking water supply and household sanitation services in 216 rural areas in 15 districts which account for over 5 million of the country’s population.