The signing of the loan agreement was officiated by the Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana and the World Bank Country Director of Rwanda, Yasser El-Gammal.
The loan is to be paid back in 38 years with six years of grace period and at the interest rate of 0.75%.
The Rwanda Public Financial Management Reforms Project (PFMRP) is expected to increase the professionalization of public officials and support the Ministry of Finance and Economic Planning in the expansion of the Financial Management Information System (FMIS) coverage and Electronic Government Procurement System (e-GP) as well as provide the IT backbone to all-decision-making processes in the country.
Besides MINECOFIN, the loan will benefit other PFM core institutions including the Rwanda Public Procurement Authority (RPPA) and the Institute of Certified Public Accountants of Rwanda (ICPAR).
According to the Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana, the loan has four components which include the PFM IT Systems rollout which will take about $5 million, the accountability and financial reporting to which allocation is $3.45 million, the performance based and mid-term budgeting which will take $0.7 million and the last and the largest which is the professionalization of PFM staff, and capacity development which will take $10.85 million.
The World Bank Country Director for Rwanda, Yasser El-Gammar said that Rwanda already has a solid public financial management system and “we hope this support anchored in the overall strategic plan of Rwanda will enhance this accountability to lower levels and allow the government to have more reliable medium-term budgets but most importantly will support the human capital that is involved in public financial management space.
“Rwanda has also made some very good progress in this area but there is a need for more qualified personnel in this (public financial management). We look forward to a successful implementation and we are always sure that we will, if not achieve objectives, we will exceed these objectives,” Yasser El-Gammar said.
Statistics by the Ministry of Justice indicate that in the first eight months of 2018, the Government recovered Frw616,688,568 of the public funds that had been embezzled by the public officials which were 52% of Frw1,187,235,012 of public funds stolen.