Rwanda: Support to COVID-19 Economic Recovery Fund for Private Sector (AIIB-000483)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Rwanda
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Infrastructure Investment Bank (AIIB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 24, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Rwanda
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 257.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ AIIB website

Updated in EWS Jul 9, 2024


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to AIIB website, the project aims to address the liquidity and financing constraints of private sector businesses in response to and during the recovery from the COVID-19 crisis in Rwanda. This will, in turn, sustain MSMEs during the crisis period, and in post-crisis recovery, maintaining and creating employment. 

The Project will comprise 4 components:

  • Component 1 – Liquidity and recovery facility
  • Component 2 – Risk-sharing facility, to provide partial credit guarantees and de-risking mechanisms to MSMEs,
    in support of Component 1
  • Component 3 – Institutional strengthening and implementation, in support of Component 1
  • Component 4 – Contingency Emergency Response Component
Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The AIIB categorized the project E&S risk as 'FI', adding that the World Bank categorized the project E&S risk as 'Substantial', which is equivalent to Category B/FI if AIIB’s ESP were applicable.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to the AIIB, the IDA (part of the World Bank Group) will contribute to the project with an investment of US$ 157.5 million.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated on the bank's website, Development Bank of Rwanda (BRD), is a Public Company Limited by Shares, with a share capital of RWF 57,808,931,000, registered at the Officer of the Registrar General, whose company code n° 100003547.
The Bank was incorporated on August 5, 1967; however, its incorporation certificate was issued on 7/7/2011 while a banking license n°003 was issued by the National Bank of Rwanda on August 11, 2009.
For more than four decades, BRD has been the sole provider of long term finance and has significantly facilitated the emergence of different productive enterprises in the private sector.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AIIB Team Leaders:

Suzanne Shaw - Infrastructure Sector Economist
Email: suzanne.shaw@aiib.org

Gabriel Alfredo Giacobone - Infrastructure Sector Economist
Email: gabriel.giacobone@aiib.org

World Bank Team Leader:

Leyla Castillo - Senior Financial Sector Specialist
Email: lcastillo2@worldbank.org

Borrower - Government of Rwanda:

Amina Rwakunda - Senior Economist, Macroeconomic Policy, Ministry of Finance and Economic Planning
Email: aminaa.rwakunda@minecofin.gov.rw

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.aiib.org/en/contact/information-request/index.html

ACCOUNTABILITY MECHANISM OF AIIB

The AIIB has established the Accountability Mechanism for Project-Affected People (PPM). The PPM provides Òan opportunity for an independent and impartial review of submissions from Project-affected people who believe they have been or are likely to be adversely affected by AIIBÕs failure to implement the ESP in situations when their concerns cannot be addressed satisfactorily through Project level GRMs or AIIB Management processes.Ó Two or more project-affected people can file a complaint. Under the current AIIB policy, when the bank co-finances a project with another development bank, it may apply the other bank's standards. You can refer to the Project Summary Information document to find out which standards apply. You can learn more about the PPM and how to file a complaint at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/how-we-assist-you/index.html

The complaint submission form can be accessed in Arabic, Bahasa Indonesia, Bengali, Chinese, English, Tagalog, Hindi, Nepali, Russian, Turkish, or Urdu. The submission form can be found at: https://www.aiib.org/en/about-aiib/who-we-are/project-affected-peoples-mechanism/submission/index.html

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How it works