The Finance Ministry last week announced that the government of Rwanda had secured a whooping U$ 18 Million (approx Frw 18 billion) to rehabilitate 36 km Nyacyonga-Mukoto road.
According to an official statement seen by Taarifa Business Desk, the Government of Rwanda and the OPEC Fund for International Development (OFID) signed the concessional financing agreement early on Friday.
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“It carries a 1.75% interest rate payment over 20 years including a grace period of 5 years. The entire project cost is estimated at US$ 41 Million. The Arab Bank for Economic Development in Africa (BADEA) has committed a financing of US$ 18 Million to this project while Government of Rwanda contribution is estimated at US$ 5 Million which will mainly cater for payment of taxes and expropriation budget,” the statement reads in part.
Dr. Uzziel Ndagijimana, the Finance Minister noted after the signing, “rehabilitation of Nyacyonga-Mukoto road will support Rwanda’s National Strategy for Transformation through accelerating sustainable urbanization with a focus on improvement of rural and urban transportation services through the establishment of 14,100km of scheduled bus routes countrywide. We thank the OFID for the longstanding partnership in different priority areas of our economy.”
In his remarks, Abdulhamid Alkhalifa the OPEC Fund Director-General said, “Our new loan will further contribute to Rwanda’s sustainable development agenda and its efforts to achieve its ambitious 2050 Vision, which sets a strategic direction to lead the country to the living standards of high income countries by 2050.”
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Once complete, the road will improve safety of road users including pedestrian and other non-motorized traffic; promote trade, increase mobility and reduce transport costs by facilitating regional mobility of both goods and people.
It will also act as a diversion to reduce traffic congestion on the national road network especially to and from the Northern Province and DRC.
