Rwanda’s first water PPP with industry leader Metito to respond to Kigali’s potable water needs
The Water and Sanitation Corporation (WASAC), Rwanda Development Board (RDB) and Ministry of Infrastructure (MININFRA) today signed a Water Purchase Agreement (WPA) with Kigali Water Limited, a Rwandan-registered company wholly-owned by Metito, a global provider of water management solutions that is headquartered in the UAE.
When completed, the Kigali Bulk Water Supply Project will add 40,000m3/d of potable water to WASAC’s reservoirs Project. The water public private partnership (PPP), Rwanda’s first, will allow WASAC to better serve communities in Kigali, Bugesera, Kagarama, Nyanza and Gahanga. The project aligns with the Government of Rwanda’s policy objectives delineated in its Economic Development and Poverty Reduction Strategy II (EDPRS II) to achieve universal access to water and sanitation, improve the quality of water consumed, and increase management of water supplied by the private sector.
Speaking at the signing, Hon. Germaine Kamayirese, Minister of State in Charge of Energy, Water and Sanitation, said “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, said: “Today is a 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 all here today to set a precedent, and mark a truly important achievement – not only for Rwanda – as we are setting the stage for what will become an exemplar project for public private partnerships for the whole of Sub-Saharan Africa. We have successfully implemented projects under concession basis across a number of other markets but the strategic implications of this particular project make it truly special. We are genuinely honoured to be part of this sustainable and visionary project that will serve the people of Rwanda today and for generations to come”, Mutaz added.
The Rwanda Development Board’s Chief Executive Officer, Francis Gatare said; “We are pleased to have a UAE based investor on board, contributing to our development agenda while improving lives of Rwandans. Our country continues to register progress in enhancing business and investment environment“.
In addition to RDB, WASAC had the help of the International Finance Corporation (IFC), a member of the World Bank Group. The IFC assisted in structuring and procuring the PPP through a competitive bidding process that saw strong interest from international water management companies, with Metito emerging as the winner.
“IFC advised the Government of Rwanda on structuring the Kigali water project, which will improve public health and living standards in the city” said Oumar Seydi, IFC Director for Eastern and Southern Africa. “IFC’s long-standing experience in public-private partnerships has shown us that private companies can help government deliver public services such as electricity, water, health, and education more effectively.”
Metito will construct and operate a plant to treat river water, which will be extracted from the south bank of the Nyabarongo River via this PPP arrangement, which is set for 27 years. The project will take approximately two years to be completed.
The actual access to potable water in Kigali is at 85% while the county’s provision average is 75%. By 2018, the country envisions to cover 100% of Rwanda residents access to potable water.
Kigali Bulk Water Supply Project – Official Signing Ceremony