UAE-based Metito, a leader in total intelligent water management solutions in emerging markets, said it has won a contract to develop the first bulk surface water supply project in Sub-Saharan Africa at Kigali in Rwanda.
Annoucing the financial close of the first competitively tendered build-operate-transfer water concession in Sub-Saharan Africa, the government of Rwanda and Metito said the finalisation of this public private partnership (PPP) agreement spells the start of execution of the country's ambitious project with construction forecasted to last 30 months from the commencement date.
The Kigali Bulk Water Supply Project will provide 40 million litres of fresh, clean and safe water per day to the residents of Kigali.
As per the agreement inked with the government of Rwanda, Metito's fully-owned subsidiary Kigali Water Limited (KWL) will design, build, maintain and operate the treatment plant and then sell potable water to the Water & Sanitation Corporation of Rwanda (Wasac) under a 27-year PPP agreement.
A global provider for intelligent water management solutions, Metito has 60 years of experience developing and managing water facilities across the world covering four continents with operations covering three business areas: design and build, specialty chemicals, and utilities.
The Emerging Africa Infrastructure Fund (EAIF), a member of the Private Infrastructure Development Group (PIDG), is the mandated lead arranger of the financing of this project which is worth $60.8 million.
EAIF and The African Development Bank (AFDB) are covering $40.6 million of the capital cost of the project; $38 million of senior debt and $2.6 million of junior debt with all loans on 18-year terms.
The balance will be provided by Metito as equity finance. The Kigali Bulk Surface Water Supply PPP project also benefits from a $6.25 million grant from PIDG’s Technical Assistance Facility.
David White, the chairman of the EAIF said: "The conclusion of the financing is tremendous news for Rwanda. Fresh, clean water has a fundamental role to play in economic development and water-dependent businesses like hotels, food processing and leisure, will have greater confidence in investing in Kigali."
"The financing exercise has been a model of cooperation between EAIF, the AFDB, the Government of Rwanda, and Metito," he added.
Metito's chairman and chief executive 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 people of Rwanda," he added.-TradeArabia News Service
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