Additional funds to support VUP

KIGALI - THE World Bank Group has pledged an additional US$6m (approx. Rwf3.4bn) besides budgetary support, the latest package being committed to improving incomes of the most extreme poor under Vision 2020 Umerenge Programme (VUP).

VUP is a government programme aimed at concentrating resources for integrated development as a way of fast tracking the attainment of Vision 2020 aspirations.

The grant is an addition to the $115.6 million announced earlier that WB had earmarked to supplement the country’s budget, part of which, ($29.5m) came from the Crisis Response Window (CRW).

The official signing ceremony of the two grants that now amount to $121.6m was held between Finance Minister John Rwangombwa and Mimi Lodipo, the Country Director of the World Bank.

The VUP grant is the second of its kind initiated under Community Living Standards Grant (CLSG) that mainly aims at supporting the government in social protection and health policy reforms.

At the signing ceremony held at the Ministry of Finance, Rwangombwa hailed the World Bank, saying it is a key partner in the national development programmes especially in identified triggers of the economy.

"The (VUP) grant will improve the lives of people living in extreme poverty as identified in the 2005 and 2006 survey,” Rwangombwa said.

It will be allocated to the 30 sectors where VUP is piloted, to expand access to high impact health, nutrition and population intervention at the community level.

Lodipo said that Rwanda is the first country to benefit from CRW, attributing this to the effective policies the government has put in place and the country’s efficiency in using aid.

"Rwanda has undertaken huge progress in policy reforms to increase transparency in public finance management,” she said.

Ladipo said the grant will focus on community health programmes, public works and health innovations related to attaining health related MDGs.

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