26 June 2014

Rwanda: BRD Gets Rwf4 Billion to Finance Projects That Promote Sustainable Devt

Development Bank of Rwanda (BRD) has secured a Rwf4b line of credit from the Fund for Environment and Climate Change (Fonerwa) to finance private sector investments that promote sustainable green economic growth.

"This funding will greatly promote green growth among the private sector players and further strengthen the government commitment to sustainable development and a green economy," Caroline Kayonga, the Ministry of Natural Resources Permanent Secretary, said.

Kayonga was speaking at the signing of a memorandun of understanding (MOU) between Fonerwa, which is under the natural resources ministry, and BRD at the bank's head offices in Kigali yesterday. The deal aims increasing lending to private sector projects that are environmentally-friendly and promote sustainable means of production and business operations.

"We are pleased to partner with BRD, which will help us achieve our goal of promoting green growth that is in line with the objectives of the second Economic Development and Poverty Reduction Strategy (EDPRS II), Kayonga said.

Speaking at the event, Alex Kanyankole, the BRD chief executive officer, said Fonerwa will contribute 70 per cent (Rwf4b) of the funds and the bank 30 per cent (Rwf1.7b) of the total credit.

"The funds will target private sector projects that focus on clean technology and environmental sustainability, including sustainable energy projects such as hydropower generation, solar and biogas, which will be a huge relief on energy needed by industries and households."

Kanyankole said borrowers would access the money at 11.5 per cent interest rate per annum.

"The rate is lower than what commercial banks offer to enable more people to take up these loans to undertake green projects," he said.

Kayonga said the joint contribution will enable the setting up of a revolving credit facility to promote green investment.

"This funding is mainly for promotion of private sector projects that are environmentally-safe and can propel the economy forward," Kayonga noted.

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