Nairobi — The Rwandan government and the African Development Bank (ADB) have signed loan and grant agreements worth UA 21.77 million (US $29.9 million) for three projects in Rwanda, ADB reported on Wednesday.
The loans and grants for the water, HIV/AIDS and natural resources projects will be financed by a UA 11.77-million ($16.2 million) loan from the African Development Fund (ADF), a UA 6-million loan ($8.2 million) from the Nigeria Trust Fund and a UA 4-million ($5.5 million) grant from ADF.
A statement issued by the bank said Rwandan Finance Minister Donald Kaberuka and ADB President Omar Kabbaj signed the documents in Dubai.
The project on water and energy supply for the Rwandan capital, Kigali, would result in a significant increase in the availability of potable water and electricity, ADB said.
"Additional benefits from the project are expected to include a significant reduction in water-borne diseases," the bank said.
The project is also expected to provide a stimulus for increased industrial and commercial investments as well as employment opportunities by reducing the costs of these essential inputs.
The HIV/AIDS project will assist the government of Rwanda to implement its national and multisectoral plan for fighting the pandemic. "It aims at strengthening the institutions responsible for implementing these plans, in particular the National HIV/AIDS Commission and national sector committees," ADB said.
The third project would help the government to manage its natural resources in a sustainable manner "by strengthening the institutions responsible for the management of the environment and by providing for capacity building activities, including training".
Kabbaj said the progress made by the government of Rwanda in the last few years, especially in its efforts to reduce poverty, was commendable.
On his part, Kaberuka said the agreements would make a significant contribution to the government's efforts to reduce poverty.