The Diplomat
The Council of Ministers yesterday authorized the granting of a $28 million (24.8 million euros) credit to the Republic of Rwanda, under the Fund for the Promotion of Development (FONPRODE), for the financing of an irrigation and integrated watershed management project.
The Kayonza Irrigation and Integrated Watershed Management Project. Phase 2 (KIIWP2) will be cofinanced by the International Fund for Agricultural Development (IFAD), which will provide US$21.78 million, and by FONPRODE, which will provide US$28 million, with a 40-year repayment term. As a result, the loan includes authorization for a payment of up to US$445,000 (more than 395,300 euros) to IFAD, also charged to FONPRODE, for project preparation and supervision. The rest of the estimated financing is US$8 million to be provided by the Rwandan government, US$2 million by the beneficiaries and US$1 million from other entities, mainly from the private sector.
The objective of the project is to sustainably improve the food security and incomes of at least 40,000 rural households and build their resilience to climate change. Fifty percent of the beneficiaries will be women, especially female-headed households, which are among the most vulnerable. The project will be implemented in the east of the country, in Kayonza district, which has the highest vulnerability index to climate change and where increased extreme events and droughts have led to a decline in agricultural production.
The Republic of Rwanda ranks 160th out of 189 countries in the Human Development Index (HDI 2020). This credit operation under FONPRODE will be the first to be granted to Rwanda. “Rural development and food and nutrition security are priority sectors for Spanish Cooperation in Sub-Saharan Africa,” the Council of Ministers recalled. In addition, the operation contributes to the achievement of the goals of Sustainable Development Goal 2 Zero Hunger of the 2030 Agenda for Sustainable Development, which are listed as “strategic” in the V Master Plan for Spanish Cooperation.
