Water supply project to bring 500,000 people in Rwanda clean water
The Emerging Africa Infrastructure Fund (EAIF) has signed a financing deal for a large-scale water treatment facility in Rwanda.
The announcement on 27 November is for what will be the first bulk surface water supply in sub-Saharan Africa using a public/private partnership model.
EAIF’s first water project in a big city will also be one of few sub-Saharan Africa water infrastructure projects being done on a build, operate and transfer basis.
The fund is predominantly funded by the UK, Netherlands, Sweden, Switzerland governments because of its status as a Private Infrastructure Development Group (PIDG) member.
EAIF also receives funding from private sector banks and FMO, the Dutch development bank and its German Equivalent, KFW.
As the mandated lead arranger of financing the project, EAIF is lending US19mn of Senior Debt and $2.6mn of Junior Debt to Kigali Water Limited.
An additional $19mn of Senior Debt will be provided by the African Development Bank, with all loans lasting for an 18-year term.
PIDG’s technical Assistance Facility is also donating a $6.25mn grant to the project.
“The conclusion of the financing is tremendous news for Rwanda,” stated EAIF Chairman, David White.
“Fresh, clean water has a fundamental role to play in economic development. Water-dependent businesses like hotels, food processing and leisure, will have greater confidence in investing because of the Kanzenze water works.”
The financing exercise has been a model of cooperation between EAIF, the African Development Bank, the Government of Rwanda and Metito”