Kigali, 15 May 2018: The governments of Rwanda and India, Tuesday signed a concessional loan agreement worth US$66.60 million (about Rwf56 billion) for the construction of Base-Butaro-Kidaho tarmac road in Rwanda’s Northern Province.

At the signing event held at the Ministry of Finance and Economic Planning, the Minister of Finance and Economic Planning, Hon. Dr Uzziel Ndagijimana, signed on behalf of the Government of Rwandan while Tarun Sharma, General Manager and Regional Head of India Export Import Bank (India EXIM Bank), represented the Government of India. The signing ceremony was also attended by Minister of State in charge of Transport Hon. Eng. Jean de Dieu Uwihanganye.

Located in the Northern Province, the 63 kilometer road project will connect Rulindo and Burera Districts thus facilitate tourism and increased economic activity. The road project will connect the touristic centre of Burera, Ruhondo lakes, University of Global Health Equity, Cancer Reference Hospital of Butaro, as well as Uganda at Cyanika border crossing.

Speaking after the signing event, Hon. Minister Dr Ndagijimana Uzziel  pointed out that Rwanda has put emphasis on the development of transport infrastructure and services to encourage economic growth in a bid to achieve the objectives set by Vision 2020.

“Transport plays an important role in stimulating economic growth by increasing internal production and facilitating access to domestic and international markets while ensuring favorable conditions for provision and distribution of imported products within the country”. Hon. Minister Dr Ndagijimana uzziel  said.

“Rwanda has lead the way when it comes to prudent use of funds while undertaking development initiatives. This has been encouraging and we believe there are some lesson we can learn from this country,” Mr. Sharma said.

India Exim Bank Regional Head, Tarun Sharma who was representing the Government of India in the signing ceremony said that his Government is proud of continued contribution to the development and welfare of Rwandans through project financing.

“We are happy to sign this loan; the vital subject for us is that all projects lead to the economic development and welfare of Rwandans. Project selection in Rwanda started from energy, agriculture, vocational skills and today is transportation,” he explained.

Base-Butaro-Kidaho construction works had started, but, the country continued to mobilise funding for finalization.

Minister of State in charge of Transport in the Ministry of Infrastructure, Eng. Jean de Dieu Uwihanganye said that after getting financial means, the next step is to look for a contractor so that construction works will start in November 2018, to be implemented in a period of two and a half years.

The Base-Butaro-Kidaho road development project is in line with the 10 year Rwanda Transport Master Plan adopted in 2012. The road is a single carriage with a construction period of two and a half years. Construction is due to start in November 2018 and will be implemented by Rwanda Transport Development Agency (RTDA). According to the financing modalities, the loan carries a 1.5% interest rate, will be serviced in 25 years and has a grace period of 5 years.