Rwanda, Metito make financial close of Kigali Bulk Water Supply project
The Government of Rwanda and water management solution provider firm Metito have announced the financial close of the Kigali Bulk Water Supply public private partnership (PPP) project.
This is claimed to be the first competitively tendered Build Operate Transfer (BOT) water concession in Sub-Saharan Africa, outside of South Africa.
The agreement steers the execution of the water supply project with an anticipated 30-month construction period.
The project is located at Kanzenze, in the south eastern part of Kigali, the capital city of Rwanda.
This plant will provide 40 million litres of potable water daily to residents of Kigali.
Metito chairman and CEO Mutaz Ghandour said: “The Kigali Bulk Surface Water Supply PPP project puts Rwanda on the map for the international investor community and marks a historic moment for Rwanda.
“Together, today, we are setting a precedent not only for Rwanda, but for the whole of Sub-Saharan Africa, and surely for Metito. Once complete, this will become an exemplar project for PPPs in the region – there is no doubt – so today, we must all celebrate alongside the People of Rwanda.”
The processed water will be extracted from the southern bank of the Nyabarongo River and will further supplement the existing water supplies of the city.
The project is being undertaken by Kigali Water Limited (KWL), a subsidiary of Metito. KWL will design, build, maintain and operate the treatment plant and then sell the treated water to the Water & Sanitation Corporation of Rwanda (WASAC) under a PPP agreement for 27 years.
Emerging Africa Infrastructure Fund (EAIF), which is a member of the Private Infrastructure Development Group (PIDG), is the lead financing arranger of the project, which is worth $60.8m.
EAIF and African Development Bank (AFDB) are offering a loan of $40.6m of the capital cost of the project. This amount constitutes a senior debt of $38m and a junior debt of $2.6m for 18-year term.
The remaining amount will be offered by Metito as equity finance.
The project also gets a grant of $6.25m from PIDG’s Technical Assistance Facility (TAF).