The Government of Rwanda and the Kingdom of Netherlands today signed a financing agreement worth €30 million (approximately Frw 25.8billion) to support national program that finances basic infrastructure projects in districts in order to enhance living conditions of the population.
The support in form of a grant will create enabling environment for food security and local economic development; hence contribute to the achievements of Rwanda national targets of poverty reduction and economic development. The support is in line with the long term partnership that has exists between Netherlands and Rwanda in the area of decentralization in general and local economic development in particular since 2007.
“Priority will be given to income-generating and economic infrastructure projects, while all projects will be selected based on the District Development Plans. In line with Government’s decentralization policies and strategies, the project will allow local government to implement local priorities, thus making them also more responsive to the specific local needs and enhancing local accountability”, Claver Gatete, the Minister of Finance and Economic Planning said.
“This support fits in well with Rwanda’s development programs and country system, The results of this colaboration will contribute to poverty reduction and connect local communities to economic opportunities”, Frédérique de Man, the Ambassador of Netherlands to Rwanda said.
Guided by the pillars of EDPRS2, local economic development strategy has been adopted to by the Government of Rwanda to guide districts in the process of developing their local economies through wealth and job creation. In order to fulfill this mandate districts see the need to invest in infrastructures that make their cities attractive for people and private investors. Eligible investments are those infrastructure projects that fit the districts own contexts, align to their economic potentialities and Development Plans such as market infrastructure, irrigation, community based post-harvest facilities, road infrastructure, agricultural infrastructure (radical terraces) drainage, solid waste management, water and sanitation, access to energy among others.
All the districts of Rwanda will benefit from this grant with main focus to poorest and densely populated districts. Local administrative entities Development Agency (LODA) as a government institution mandated to coordinate the financing of development projects in decentralized entities will manage the funds.
The current Division of Labor (DoL) puts Netherlands in Decentralization and Governance, Private Sector Development, Justice, Reconciliation, Law and Order Sector, and water & sanitation. Netherlands also Co-chairs Justice sector.