The agreement was signed on Wednesday 10th November 2021 during a ceremony held in Kigali City. Rwanda was represented by the Minister of Foreign Affairs, Dr. Vincent Biruta while Hungary was represented by Péter Szijjártó, the Minister of Foreign Affairs and Trade.
The funds will be utilized to expand and increase the production capacity of Karenge Water Treatment plant located in Rwamagana District.
The plant currently has the capacity to produce 15,000 cubic meters per day of which 12,000 are supplied to residents of different parts of Kigali and 3,000 cubic meters to residents of Rwamagana District.
Minister Szijjártó has explained that some of major activities include increasing the plant’s production capacity to 36,000 cubic meters per day.
In addition to increased production, Hungarian Minister of Foreign Affairs said that the credit line will also be utilized to build six-kilometer water supply network.
He went on to explain that Hungarian companies will contribute to the implementation of the project.
These companies will intervene in budget planning, supervision and digitization among others.
He revealed that the agreement also opens doors for Hungarian technology in the expansion of water supply networks to one of developing African nations noting that Hungary is ready to explore investment opportunities in Africa.
Rwanda has also signed with Hungary more agreements in the areas of air transport, health and education where the country will offer scholarships to Rwandan students.
Minister Biruta has also said that Rwanda and Hungary are committed to further strengthen existing cordial relations.
“Our cooperation is commendable and we are committed to further strengthen relations between governments, trade and both countries’ people. We are set to prioritize those areas with optimism that our relations will be beneficial to Rwanda’s development programs,” he said.
Hungary is a landlocked country in Central Europe. It is ranked as the 9th most complex economy according to the Economic Complexity Index. The country GDP was estimated at US$154, 56 billion in 2020 with service sector contributing 55.8%.