HomeNewsRwanda set to construct US $66.6m Base-Butaro-Kidaho tarmac road

Rwanda set to construct US $66.6m Base-Butaro-Kidaho tarmac road

Etihad Rail Project
Etihad Rail Project

Rwanda signs a US $66.6m loan agreement with India for the construction of Base-Butaro-Kidaho tarmac road in Rwanda’s Northern Province.

The loan agreement was signed between Dr Uzziel Ndagijimana, the Minister for Finance and Economic Planning on behalf Rwandan government and Mr. Tarun Sharma, General Manager and Regional Head of India Export Import Bank (EXIM).

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Located in the Northern Province, the 63 km road will connect Rulindo and Burera districts as well as facilitating tourism and increased economic activity.The road will also connect the rest of the country to the touristic hub of Burera, and Ruhondo lakes, the University of Global Health Equity (UGHE), a Cancer Reference Hospital in Butaro, all through to Uganda via Cyanika border crossing.

According to Dr. Ndagijimana, 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,” he said.

Developing projects
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.

However, the road construction is due to kick start in 2019. Rwanda Transport Development Agency will  implemented the project.

Other funded projects

Rwanda’s cooperation with India Exim Bank started in 2011 with the signing of an US $80m line of credit for the Nyabarongo hydro power project currently on the grid and expected to generate about 27MW. The project was completed and handed over to Government in early 2015.

Moreover, bilateral cooperation between India and Rwanda has been warm, mainly based on agreements in trading, agriculture, ICT, and energy.

Also read: Rwanda receives US $68m for Ngoma-Ramiro road upgrade

In 2013, a US $120.05m loan was extended for the Export Targeted Modern Irrigated Agricultural Project in Eastern Province’s Kirehe District and the project is on-going.

The bank has also funded projects in education, with the Government  and India’s EXIM Bank signing in May 2017 an agreement worth US $81m to be used for the construction in Rwanda of modern training and production workshops, including equipment for 10 new vocational training centres and four business incubation centres.

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Dorcas Kang'ereha
Dorcas Kang'ereha
Editor/ Business Developer at Group Africa Publishing Ltd


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