Kuwait to fund part of Rwanda,Burundi highway

The government and Kuwait Fund for Arab Economic Development (KFAED,Tuesday, penned a loan agreement amounting to US$13.6 million towards the trans-national Bujumbura-Rusizi-Karongi-Rubavu highway. The agreement was signed at the Ministry of Finance (Minecofin), between Finance Minister John Rwangombwa and the Kuwait Fund’s Deputy Director General for Investment, Ghanem Al-Ghenaiman.Kuwait Fund, a State of Kuwait’s agency for the provision and administration of financial and technical assistance to developing countries, will finance the construction of the 26 kilometre Rusizi-Rubavu stretch of the entire 185 kilometre, in Rwanda.Reiterating the commitment of the government in enhancing the lives of Rwandans, Rwangombwa told AL-Ghenaiman that the procurement process for a construction company for the particular road section had started.The project aims to enhance the economic and social development of the north western regions of the country. It is expected to satisfy the increasing demand for local traffic, and promote regional trade with neighbours like Burundi and the Democratic Republic of Congo (DRC).Expected to start in the first half of this year and be concluded in the second half of 2015, the project includes feeder roads connecting to Lake Kivu to serve the local fishing and tourism The latest Kuwait Fund loan is payable in 25-years including a five-year grace period . It will be amortised in 40 semi-annual instalments.The loan bears an interest rate of 1.5 percent per annum, in addition to 0.5 per cent per annum to cover administration costs and other expenses incurred in the implementation of the loan agreement.The current loan comes barely a month after the OPEC Fund for International Development recently released US$11 million to co-finance construction works on another section – the 23.6 kilometre Rubengera-Gisiza stretch of the road.Other co-financers are the Government of Rwanda (US$ 5.7m), the Arab Bank for Economic Development in Africa or BADEA, (US$11m) and the Saudi Bank for Economic Development (US$ 13 m), which is expected to sign the loan agreement next month.The total length of the multinational Road is 265.7 kilometres, with 185 on the Rwandan side (Kivu Belt Road). The whole project’s cost is now estimated at approximately $58.14 million.

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Kuwait to fund part of Rwanda,Burundi highway