Rwanda and European Investment Bank sign EUR 45 million financing agreement to fund Kigali Centralised Sewerage System

Posted on 20.02.2018

February 20, 2018: Residents of Kigali are set to benefit from the country’s first wastewater treatment plant and public sewage 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 sewage and wastewater project.

The entire project is expected to cost EUR 96 million and it will be financed by the EIB alongside African Development Bank and who will contribute 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 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 for the 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. 

“The European Union recognises the importance of new investment in wastewater to achieve sustainable development goals. Hard work by 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, representatives of the Water and Sanitation Corporation of Rwanda and Ambassador Nicola Bellomo, Head of the European Union Delegation to Rwanda.

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