Rwanda has signed a Financing Agreement with the Saudi Fund For Development to co-finance Lot 6, Rubengera-Gasiza of Kivu Belt Multinational Road.
The MOU was signed October 12, in Tokyo-Japan as a sideline event to the World Bank/IMF Annual Meetings.
The Government of Rwanda, represented by Honorable John Rwangombwa, Minister of Finance and Economic Planning and the Saudi Fund For Development, represented by HE Eng. Yousef Ibn Ibrahim Al-Bassam, the Fund’s Vice Chairman and Managing Director.
The aforesaid signing ceremony is about the US$ 13,000,000 pledge that Saudi Fund For Development did during the fundraising round table to co-finance Lot 6, Rubengera-Gasiza of Kivu Belt Multinational Road as sidelines of the 9th Government of Rwanda Development Partners Meeting (DPM) November 2010 in Kigali.
During its meeting in the 2nd quarter of 2012, the Fund’s board of Directors approved the Loan to Rwanda of US$ 13 Million under more good (concessional) terms.
During the signing ceremony Rwangombwa, on behalf of the Government of Rwanda, and HE Eng. Ibrahim Al-Bassam, expressed their satisfaction on the development partnership between Rwanda and and the Saudi Fund.
The road will be 23.6 Km long and 7 meters wide at a total cost of US$ 52.7 Million. The other contributors to the funding of the road section are: the Government of Rwanda (USD 4.35 Million), Kuwait Fund For Arab Economic Development (US$ 13 Million), The OPEC Fund for International Development (OFID, US$ 10 Million), Arab Bank for Economic Development in Africa (BADEA, US$11 Million).
We have signed with all other 3 Arab co-financiers;
Design studies were completed in 2008 by Saudi International and Construction Works started in 2010 by Lot 3, Rusizi-Mwityazo, 50 Km, under the funding from the African Development Bank, of US$ 63 Million.
The African Development Bank and Government of Rwanda have also financed Lot 7, Gasiza-Rubavu (US$ 68 Million) of 47,8 Km.
The Government of Rwanda contracted a US$ 113 Million China Export Import Bank to construct Lot 4 and Lot 5, 66 Km from Mwityazo (Nyamasheke) to Rubengera (Karongi).
The total length of the multinational (Burundi-Rwanda) Road is 265.7km, with 185 Km on Rwandan side (Kivu Belt Road) to cost Rwanda on designs, construction and supervision of works US$ 350 Million.
With the Saudi Fund financing, the mobilization of the funding is concluded.
When completed, the multinational road will have among other benefits such as promoting regional integration, contribute to trade and provide easy access to these land locked countries to the sea ports.
It additionally will increase the potential for tourism and fisheries on Lake Tanganyika and Lake Kivu.
As internal benefits, the road will increase trade, reduce transportation time and costs in the western province, as well as the rest of the country. The Western province produces 70% of the nation’s coffee and 40% of the nation’s tea.
Ongoing projects of the Fund include “Increased Electricity Access in Some Areas in Rwanda” project: US$ 11 .7 Million, the “Rehabilitation of Kitabi-Congo nil Road” Project : US$ 10 Million and the Rehabilitation and the “Extension of King Faisal Hospital” Project: US$ 12 Million.
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