Saudi Fund, Rwanda sign a US$ 14 million to boost roads network

Saudi Fund, Rwanda sign a US$ 14 million to boost roads network

The Saudi Fund for Development and the government of Rwanda signed a US$ 14 million financing agreement for the construction of Huye-Kitabi Road.

The 53.5 kilometer road will connect Huye, Nyamagabe, Rusiszi and Nyamasheke districts in both the Western and Southern provinces of Rwanda.

This financial agreement is in form of a concessional loan, repayable in 30 years with a 10-year grace period and an interest rate of one percent.

The road will improve access to production zones and markets, especially for agricultural produce, foster regional integration through the promotion of trade with neighboring countries.

“Once this road is complete it will foster socio-economic development particularly through the development of agriculture and tourism,” Claver Gatete, the Minister of Finance and economic planning said.

 “We are happy to contribute towards infrastructure development of Rwanda and continue to be partners in the long run,” Vice chair of the Saudi Fund Eng. Yousef I. Al-Bassam said.

The Kitabi-Huye road project which is linked to Kitabi-Congo-nil road, has already secured financing from BADEA worth US$ 10 Million, OPEC Fund for International Development (OFID) worth US$ 12 Million and the government counterpart financing of US$ 4 Million.

The signing of this financing agreement meets total cost for the construction of the entire road.

In October 2012, Saudi Fund and the government of Rwanda also signed a financing agreement of US$ 13 million to boost Lot 6, Rubengera-Gasiza of construction of Kivu Belt Multinational Road.

This support fits well in EDPRS2 particularly in areas of increasing economic transformation for growth, productivity and rural development.

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