The OPEC Fund for International Development has extended a US$21 million loan to support the expansion of the Karenge Water Supply System Project. This initiative is set to improve the water supply for the inhabitants of Rwanda’s capital, Kigali, and the Rwamagana District.
The loan from the OPEC Fund is part of a larger US$143.3 million financing package, which includes contributions from the Abu Dhabi Fund for Development, the Saudi Fund for Development, the Arab Bank for Economic Development in Africa, and the Export-Import Bank of Hungary.
The agreement was signed by OPEC Fund Director-General Abdulhamid Alkhalifa and Rwanda’s Minister of State in charge of Public Investment and Resource Mobilization, Jeanine Munyeshuli, at the Saudi-Arab-African Economic Conference in Riyadh, Saudi Arabia.
Alkhalifa emphasized the critical role of water as a resource that not only sustains life but also propels economic growth. He highlighted the OPEC Fund’s commitment to enhancing Rwanda’s water management capabilities, ensuring access to clean water, and addressing the demands of a growing population while also considering the implications of climate change.
At the heart of this project is the planned expansion of the Karenge water treatment plant, situated by Lake Mugesera, around 50 kilometers southeast of Kigali. The project aims to increase the plant’s capacity fourfold to 48,000 cubic meters per day, which is projected to satisfy the region’s water demands up to the year 2050.
Rwanda has been a recipient of nearly US$270 million from the OPEC Fund, supporting over 30 projects in various sectors including transport, water supply, sanitation, energy, and finance. The nation has also benefited from over 25 national and regional grants provided by the Fund.
The OPEC Fund stands as a unique development institution, established in 1976 to promote development, community strengthening, and people empowerment, particularly in low- and middle-income countries. With a focus on projects that cater to fundamental needs, the Fund has made commitments exceeding US$24 billion in over 125 countries, with the overarching goal of making sustainable development a global reality.