Kigali,13^th July,2017- Rwanda signed a $162.4 million (about Rwf130.7 billion) loan agreement with the African Development Bank (AfDB) and Japan International Cooperation Agency (JICA) for the rehabilitation of two key roads: one connecting Rwanda to Uganda, and another one linking the country with Tanzania.

The repair of the 208km road consists of the 116km Kagitumba-Kayonza road section along the Northern Corridor and links Rwanda and Uganda at Mirama Hills in Kagitumba, Kayonza District. The facility will also fund works for the Kayonza-Rusumo section (92km) linking to Tanzania through the Central Corridor.

The overall project, which also covers some road works in Uganda and Burundi, will cost $376.5 million. The Rwanda side of the project is expected to cost over $137.5 million to be co-financed by AfDB and JICA. AfDB will contribute $94 million and JICA will add $68.4 million of the credit facility. The loans will be repaid over a period of 40 years, with 10 years of grace period, according to Minister of Finance and Economic Planning, Amb. Clever Gatete.

The Government of Rwanda will inject in $12.5Million to support the project through expropriation activities, while a grant of $22 million from the European Union will also be used to make the project successful in line with the timeline set. “These roads are vital links, which support the regional integration objectives of the East Africa Community and the Great Lakes region, contributing to poverty reduction and regional integration efforts.”

The project will foster regional trade, help reduce cost of transport, as well as increase economic empowerment of women, and improved performance of transport sector institutions.

 “This is the largest project bringing transformations supported by AfDB since it started in 1974. We congratulate the Government of Rwanda for involvement in signing these agreements. This project is the foundation of regional cooperation,” Negatu Makonnen, the AfDB country representative noted”.

Japan’s Ambassador to Rwanda, Takayuki Miyashita also said that the contribution is the largest donated to Rwanda in 27 years adding that the fund is meant to contribute to the expansion of good infrastructures the county is building.

He noted that Japan lauds the great achievements of Rwandan Government as a result of good leadership which united citizens and establishing strong measures of combating bribery.

Rwanda Transport Development Agency (RTDA) is mandated to oversee the execution of the Project and supervise all Construction activities expected to commence in November 2016 and supposed to be completed in November 2019.