PROJECTS

Kigali Bulk Water Supply Infrastructure

The problem

Kigali’s water supply infrastructure was under strain because of its rapidly growing population. With intermittent water supply and most people only served by communal stand posts, the city needed to increase capacity. The Government of Rwanda sought to develop a new water source through a US$78 million bulk water supply PPP. Although the project was economically viable, it had not secured enough funding to reach financial close.

How we helped

We prepared an application for viability gap funding (VGF) to the Technical Assistance Facility (TAF) of the Private Infrastructure Development Group (PIDG) showing that the project was economically viable and in need of US$6.5 million to become financially viable. We also showed that the project would increase private sector investment for infrastructure, as well as improve access to infrastructure services, both in terms of additional connections and improvements in services.

Impact

TAF approved the VGF and granted US$6.5 million to reduce up-front costs. The project is operational as of February 10, 2021 and became Rwanda’s first water PPP, winning the Water Deal of the Year at the 2018 Global Water Awards. The new water source will deliver 40 million liters per day of potable water to Kigali. This will allow the utility to expand water coverage rates and improve reliability without raising tariffs: 150,000 customers will benefit.