The funds,allocated within the framework of the ACP-EC partnership agreementfor African, Caribbean and Pacific regions, are expected to be channelled through the government's budget to top-up EU supported programmes poised on decentralising agriculture, improving feeder roads and fighting malnutrition.

"With the approval of these funds, we shall increase our original multi-annual programme for the year 2008-2013 by 30 percent which is quite significant. Rwanda is among the top ten countries worldwide for which EU has decided to increase their funding by almost one third," Head of the EU delegation in Rwanda Michel Arrion said after the signing ceremony.

"This is due to the exemplary progress Rwanda made in recent years in good governance, sustainable development and the fight against malnutrition with a three pronged approach; to address food production, access to food and nutritional aspects."

Minister of Finance, John Rwangombwa commended Rwanda's relationship with EU, saying such partnerships are fundamental in achieving economic transformation that the country aspires for.

"As we get closer to the Millennium Development Goals, we continue to structure our economic plans to bring about the largest level of change for our nation," the minister observed.

Arrion added that the fact all funds are spent exclusively through the national budget indicates EU's trust in a government highly committed to its development agenda.

A review conducted by European Development Forum (EDF) singled out ten countries, including Rwanda, for exceptional management of development funding, a platform that the EU uses to increase its support.

EU supports over 74 countries in the African, Caribbean and Pacific Regions.