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The Government of Rwanda has signed a PPP agreement with a water management company, Metito, to develop a new bulk water source for the capital city of Kigali.
The new bulk water supply plant is expected to have capacity to serve 40 % of Kigali's potable water requirements, a city with a population of over one million residents. The plant, which will take approximately two years to construct, will be located in Kanzenze in the South Eastern part of Kigali. On completion the plant will supply 40,000 m³ of treated water every day.
Metito will be responsible for the financing, design, construction, operation and maintenance of the treatment plant and forwarding infrastructure including transmission pipelines to three storage reservoirs. The concession period is 27 years.
This is the first water concession of such scale awarded by the Government of Rwanda, and is one of the few bulk water PPPs in Sub-Saharan Africa outside of South Africa.
Hon. Germaine Kamayirese, Minister of State in Charge of Energy, Water and Sanitation, stated:
"Rwanda is undergoing massive economic development, it is imperative that we have the infrastructure that can support the country's ambitions. The implementation of this project is part of the Vision 2020 plan to keeping up with increased demand for clean water, while improving its quality."
Mutaz Ghandour, Metito Chairman and CEO, commented:
"This is an important milestone for Metito as we join hands for the first time with the enlightened government and people of Rwanda in what we know will be a long and mutually beneficial partnership. We are genuinely honored to be part of this sustainable and visionary project that will serve the people of Rwanda today and for generations to come."
IFC, a member of the World Bank Group, advised the Government of Rwanda on structuring the project and the PPP. It also has supported the Government to conduct the competitive bidding process for the project. IFC's transaction advisory was implemented with support from the Infrastructure Development Partnership Fund (DevCo), the Public-Private Infrastructure Advisory Facility (PPIAF) and the governments of Austria, Denmark, Japan, Netherlands, Norway, Sweden, and the United Kingdom.
Oumar Seydi, IFC Director for Eastern and Southern Africa, added:
"IFC advised the Government of Rwanda on structuring the Kigali water project, which will improve public health and living standards in the city. IFC's long-standing experience in public-private partnerships has shown us that private companies can complement the government's efforts to deliver public services such as electricity, water, health, and education."
The Government of Rwanda has adopted a number of reforms in the water sector with the aim to achieve universal access to water for its citizens. A 2009 study found that water supply coverage in the Rwandan capital was only 76 percent, with one in four people not having access. The partnership with Metito will support the government's commitment to have 100 percent water supply coverage in Kigali by 2017.