The Government of Rwanda Signed July 27, two financing agreements comprised of a Loan agreement of Units of Account (UA) between African Development Bank and Government of Rwanda of a total amount of US$ 320 Million.
Since 2010, the Government of Rwanda has been mobilizing financing for the construction of the Kivu Belt road project.
The 186 km road project which stretches from Rusizi to Rubavu via Karongi was costed at USD 320 million. The mobilization was made in four lots (lots 3, 4, 5, 6 and 7) .
This road project connects Rwanda to DRC and Burundi, it is expected that once the road is completed, it will facilitate trade and boost tourism along the North and South corridors.
During the signing, Government of Rwanda represented by the Permanent Secretary and Secretary to the Treasury in the Ministry of Finance and Economic Planning, Ms. Kampeta Sayinzoga and the African Development Bank represented by Mr. Negatu Makonnen, the Resident Representative of the African Development Bank, Rwanda Office, signed two financing agreements.
The agreement comprised of a Loan agreement of Units of Account (UA) 40,525,000 and a Grant agreement of Units of Account (UA) of 4,525,000 both totalling to UA 45,050,000 (approximately USD 68 million) to finance Lot 7 of the Kivu Belt.
Lot 7 covers Rubavu-Gisiza and has a length of 47.9 KM. This is phase three of AfDB financing to this multinational road, the first and second phases saw the construction of 100 km route connecting Ruhwa – Cyangugu-Ntendezi-Mwityazo (Lot 3 of the Kivu belt covering 50km) with financing equivalent to UA 65,000,000, approximately USD 89,000,000.
The other co-financers for the road sections are:
The Government of Rwanda which provides counterpart funds on all lots
Exim China which provided financing for Lot 4 and 5 (66 Km) with an amount equivalent to of USD 116 Million covering Mwityazo – Ruvumu & Ruvumu – Kibuye
Arab Funds (Kuwait Fund For Arab Economic Development, the Saudi Bank For Economic Development, the OPEC Fund for International Development and the Arab Bank for Economic Development in Africa) which provided USD 47 million to finance Lot 6 covering Rubengera (Karongi)-Gisiza (Rutsiro)-23.6 km.
The Permanent Secretary and Secretary to the Treasury thanked the AfDB for its continued support to Rwanda’s development Programme especially in the area of Infrastructure development- a priority sector in the EDPRS.
The Resident Representative of the AfDB commended the Government of Rwanda for its continued effective use of Development Partners’ support and pledged on behalf of the Bank to continue supporting Rwanda’s development agenda.
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