
Prior to the project, an estimated 72 percent of the rural population had access to a water point serving less than 200 users - but actual access was in fact much lower because of the poor condition of facilities. Only 20 percent of rural schools and health centers had access to adequate sanitation facilities. Rwanda’s rural water supply has traditionally faced such issues as top-down programming of investments, poor cost recovery, limited private sector participation and high per-capita investment costs for system construction. Early attempts by the World Bank to introduce community participation and ownership of facilities failed in the absence of strong government commitment to decentralization.

IDA’s Rural Water Supply and Sanitation Project is working to provide basic drinking water facilities to about 370,000 people in rural areas and to promote better household sanitation and hygiene. It is promoting simple water supply and sanitation systems that are planned, operated and maintained by water users' associations (WUAs) with private sector support in those communes that need improved services the most. Grants–along with technical assistance–go directly to communities for constructing water and sanitation facilities.

352,000 people now have access to improved water services. That number is expected to reach 472,000 by end-2007.
Highlights:
- As of December 2006, more than 12 percent of the 830 water-piped systems existing in the country were privately managed.
- Rwanda’s government has significantly increased direct financing from the national budget for district water supply projects–US$2 million in 2006 and US$7 million in 2007.
- 70,000 students benefited from improved school hygiene thanks to adequate sanitation facilities and water tanks.
- So far, nine community development committees are able to program and execute water supply and sanitation investments and four partner organizations assist these communities.
- A number of capital works on the water supply system have been completed or are underway.

- US$20 million.
- Along with other donor partners, IDA helped the government lay the groundwork for a unified implementation framework which provided the basis for harmonized donor support in the water sector. The framework is based on the government’s national strategy and program and medium-term expenditure framework.
- IDA promoted community participation in investment and maintenance decisions, and private sector participation in the provision of water supply and sanitation services.
- The project has introduced a key reform for the management of water supply systems through the development of public/private partnership between the districts and local private operators.

IDA continues to provide policy advice and financing through budget support. District water supply projects and sanitation services will subsequently be financed from the national budget and implemented using national capacity and procedures. All water supply systems will be managed by local private operators under the control of district authorities. Under these circumstances, Rwanda is expected to reach the Millennium Development Goal target of providing 85 percent of the population with potable water by 2015.