The OPEC Fund for International Development has announced a $21 million (about Rwf26 billion) loan to support a sustainable water supply project in Rwanda.

The Fund's Director-General, Abdulhamid Alkhalifa, and Rwanda's Minister of State in charge of Public Investment and Resource Mobilization, Jeanine Munyeshuli, signed the loan agreement on the side-lines of the Saudi-Arab-African Economic Conference in Riyadh, Saudi Arabia on Thursday, November 9.

The loan, according to the statement, will help expand the Karenge Water Supply System Project, benefiting the population of Kigali and Rwamagana District.

The loan complements a $143.3 million financing package jointly provided by the Abu Dhabi Fund for Development (AFDF), the Saudi Fund for Development (SFD), the Arab Bank for Economic Development in Africa (BADEA), and the Export-Import Bank of Hungary.

The OPEC Fund Director-General said: "Water is a vital resource that sustains life and drives economic development. We are proud to support Rwanda's efforts to improve water management systems and provide access to potable water and sustainable services to meet rapidly growing demand. Sustainable water management is also necessary to mitigate the impacts of climate change, foster better health and create new economic opportunities for the people of Rwanda."

The centerpiece of the project is the expansion of the Karenge water treatment plant on the shores of Lake Mugesera, about 50 kilometers southeast of Kigali.

The enlargement of the plant is expected to quadruple its capacity to 48,000 cubic meters per day, meeting the local water demand until 2050. To date, the OPEC Fund has provided nearly $270 million to Rwanda in support of more than 30 projects in the public and private sectors, mainly focusing on transport, water supply, sanitation, energy, and finance.

Rwanda has also benefited from over 25 national and regional OPEC Fund grants.