Rwandan Government has secured a concessional loan of $66.60 million to construct 63Km Base-Butaro-Kidaho tarmac road, in the Northern Province.
Minister for Finance and Economic Planning, Dr Uzziel Ndagijimana, and Tarun Sharma, General Manager and Regional Head of India Export Import Bank (EXIM) signed the agreement to achieve part of vision 2020.
The 63 kilometer road will connect Rulindo and Burera districts to facilitate increased economic activity, touristic hub, the University of Global Health Equity (UGHE), a Cancer Reference Hospital in Butaro, as well as link to Uganda through Cyanika border crossing.
“Transport facilitates economic growth, increased internal production and access to domestic and international markets,” he said.
The Base-Butaro-Kidaho road is part of the 10-year Rwanda Transport Master Plan adopted in 2012. The road will be completed in two and a half years and due for use in 2019, Rwanda Transport Development Agency noted.
Under the financing agreement, the loan carries an interest tag of 1.5 per cent interest serviced in 25 years after grace period of five years.
India and Rwanda have trade ties in trading, agriculture, ICT, and energy.
Rwanda’s cooperation with India Exim Bank started with the signing of an $80-million loan in 2011 that saw the construction of the 28MW Nyabarongo hydro power dam completed 2015.
In 2013, the two partners then invested a $120.05-million loan in the Export Targeted Modern Irrigated Agricultural Project located in Kirehe District the Eastern Province. And EXIM in May 2017 loaned to the Rwandan Government $81 million for the construction of training-production workshops, for equipment of 10 new vocational training centers and 4 business incubation centers.