Rehabilitation and expansion works for the $376.5 million Kagitumba-Kayonza-Rusumo road network will officially kick off on February 8th paving way for efficient cross-border trade and transportation between Rwanda and its East African neighbors.
The overall road rehabilitation project is expected to extend to some road works outside Rwanda in Uganda and Burundi.
According to Ministry of Infrastructure officials, the official launch of the project will kick off tomorrow in Kayonza district, Eastern Rwanda – which is the centre from both Kagitumba and Rusumo areas bordering Uganda and Tanzania.
In July last year, government 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 which links Rwanda and Uganda at Mirama Hills in Kagitumba, Nyagatare district.
The project will also fund works for the Kayonza-Rusumo section (92km) linking Rwanda with Tanzania through the Central Corridor.
Entirely, works on the Rwanda side will cost over $137.5 million to be co-financed by AfDB and JICA which will contribute $94 million and $68.4 million of the credit facility respectively.
The loans will be repaid over a period of 40 years, with a 10-year grace period, according to Claver Gatete, Minister of Finance and Economic Planning.
Meanwhile, government will contribute $12.5 million to support the project through expropriation activities, while a grant of $22 million from the European Union will be used to make the project successful in line with the timeline set.
The road rehabilitation project is expected to be completed in November next year.