EAIF project wins IJGlobal African Water Deal of the Year award
In Kigali, Rwanda, Kigali Water Limited (KWL), is to build the first bulk surface water supply public private partnership in sub-Saharan Africa.
The KWL project, which is backed by the Emerging Africa Infrastructure Fund (EAIF), has been awarded African Water Deal of 2017 by the international business information and media company, IJGlobal. The award was presented to members of the project team at a dinner in London’s Natural History Museum, on 7th March.
IJGlobal awards recognise excellence in deals and transactions. They are selected on the criteria “that they involve genuine innovation and move the market forward.”
Mr David White, EAIF Chairman, and who attended the awards event, said,
“My congratulations go to KWL and Metito and to the EAIF team who so professionally arranged the financing for this project. Countless millions of Rwandans will benefit for many decades. How the project was financed also has the potential to be a model for other large-scale water infrastructure projects in Africa.”
The KWL development is being done on a Build, Operate and Transfer basis. KWL a fully-owned subsidiary of Metito, one of the world’s largest water infrastructure and utility providers.
When operational, the facility will supply c40 million litres of clean water daily. It is EAIF’s first water project in a large city and a key component in Rwanda’s drive to have fresh water reach 100% of its population.
EAIF was the Mandated Lead Arranger of the financing, which was announced on 27 November 2017. It is lending Kigali Water Limited US$19 million of Senior Debt and US$2.6 million of Junior Debt. The African Development Bank is providing another US$19 million of Senior Debt. All of the loans are for 18 year terms. The lenders are covering US$40.6 million of the capital cost of the US$60.8 million project. The balance will be provided as equity finance by Metito.
EAIF is a member of the Private Infrastructure Development Group (PIDG). The project benefits from a US$6.25 million grant from PIDG’s Technical Assistance Facility. The grant was a significant element in the creation of the financial package. Another PIDG facility, DevCo, which is managed by the International Finance Corporation (IFC), provided initial financial support to the Government of Rwanda for the legal, financial, technical and environmental feasibility assessments of the project.