AfDB approves $93 million for Rwandan road transport project
Summary
The loan will fund the rehabilitation of a 208 kilometre road in the Eastern Province of Rwanda.
The African Development Bank (AfDB) and the Rwandan government have signed a loan agreement to finance the construction of a major road, which will boost regional trade in East Africa, a statement said on Monday.
The $93 million loan will fund the rehabilitation of a 208 kilometre road in the Eastern Province of Rwanda. The road starts from Kagitumba (on the border of Uganda and Rwanda) on the Northern Corridor and ends at Rusumo on the Central Corridor (on the border with Tanzania).
The project also includes the provision of market facilities, support to communities by enhancing raw milk trading and community water supply in the Rwandan Eastern province.
“The project will contribute to poverty reduction, improve the quality of life of people in the area by providing socio-economic facilities,” said Amadou Oumarou, Director of the AfDB’s Transport & ICT Department. “It will also contribute to agriculture development and food security; and facilitate industrialization through reduced transportation and logistics costs.”
The loan agreement was signed by the Rwandan Minister of Finance and Economic Planning, Claver Gatete; and AfDB’s Resident Representative in Rwanda, Negatu Makonnen.
In his remarks, Gatete said the road is an important link to both the northern corridor port of Mombasa and central corridor port of Dar Es Salaam, which will ease access to markets and reduce the cost of doing business for Rwandans. The minister also said the project will increase the value of agricultural produce and household income.
Rwanda also signed loan financing agreements with Japan International Cooperation Agency, which is providing $56.3 million and the European Union, which is providing $22.4 million.
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