The Government of Rwanda and Kuwait Fund for Arab Economic Development (KFAED) signed a US$ 15 million (approximately RwF 11.2 billion) concessional loan to fund the construction of Nyagatare-Rukomo road project.
The Project consists of construction of a 7 meter wide, 73 kilometer two lane tarmac road between Nyagatare and Rukomo.
“KFAED operations in Rwanda have focused on transport related support as we believe ease of access is important for a land locked country like Rwanda. We are committed and open to support Rwanda’s development agenda,” Mr. Hesham Al-Waqayan, the Deputy Director of KFAED said.
“This road will reduce transport costs and mobility in general. It is also expected to facilitate access to markets, create employment opportunities, foster regional trade and overall lead to poverty reduction.” The Minister of Finance and Economic Planning Claver Gatete said.
The cooperation of Rwanda and KFAED dates back to 1975. It has been impactful mainly in areas of infrastructure, education and health.
Nyagatare-Rukomo road project is part of the wider 124.8 km Base-Nyagatare road project which is expected to cost over $80 million.
The big chunk of funding (US$75 million) comes from Arab Funds including KFAED, Saudi Fund, Arab Bank for Economic Development in Africa and the OPEC Fund for International Development while the Government of Rwanda will provide US$13.5 million counter fund.