Karenge Water Treatment Plant, one of Rwanda’s key infrastructure projects aimed at addressing water shortages, has received an additional $20 million (approximately Rwf 29 billion) to expand its ongoing works. Once complete, the facility will serve up to half a million people in Kigali and Rwamagana.

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Located on the shores of Lake Mugesera in Rwamagana District, Eastern Province, the plant will strengthen water supply to Rwamagana as well as various parts of Kigali, including Kanombe, Ndera, and Rusororo.

The funding comes in the form of a 20-year concessional loan from the Arab Bank for Economic Development in Africa (BADEA), following a cooperation agreement signed between the bank and the government on Wednesday, October 8. The funds will support the expansion of transmission and distribution systems for the project, which is already underway.

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Currently, Karenge’s daily production capacity stands at 12,000 cubic metres. Ongoing upgrade works are expected to increase that capacity by an additional 36,000 cubic metres, bringing total output to 48,000 cubic metres of water per day.

According to Asaph Kabasha, the Chief Executive Officer of the Water and Sanitation Corporation (WASAC), the upgrading works began earlier this year and are scheduled for completion by 2027.

"The work is at approximately 18 per cent progress, and the acquired loan will help expand the water network and improve distribution across the planned areas,” Kabasha said. "It will also support the construction of water tanks to store reserves from the plant, ensuring supply during shortages.”

Kabasha emphasized that the project aligns with Rwanda’s National Strategy for Transformation (NST2), which prioritises universal access to clean water. He added that expanding the plant and improving water management systems will help ensure long-term water availability and sustainability.

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Godfrey Kabera, Minister of State for the National Treasury at the Ministry of Finance and Economic Planning (MINECOFIN), who signed the loan agreement on behalf of the government, said the concessional nature of the loan will allow Rwanda to achieve its development goals without exceeding its borrowing limits.

"It is a concessional loan, which is cheaper compared to market rates, and will be repaid over a period of not less than twenty years,” Kabera said. "This will help advance the targets of NST2 and Rwanda’s Vision 2050. Rwanda continues to maintain a good record in loan repayments, as confirmed by institutions such as the World Bank.”

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Fahad Aldossari, the Chairman of BADEA’s Board of Directors, reaffirmed the bank’s commitment to supporting Rwanda’s development journey.

"Rwanda has been a valued partner of BADEA over the past five decades, since the beginning of our operations in 1974,” Aldossari said, "Looking ahead, Rwanda’s Vision 2050 presents significant opportunities to deepen our collaboration in infrastructure, energy, trade, agriculture, digital transformation, and public service delivery.”