A Loan Agreement was signed today in Kigali between the Republic of Rwanda and Kuwait Fund for Arab Economic Development whereby the Fund will extend a loan of Kuwaiti Dinars Four Million and Five Hundred Thousand Kuwaiti Dinars (K.D. 4,500,000/-), approximately 15.3 million US Dollars, to help finance the Nyagatare-Rukomo Road Project.

 

The Loan Agreement was signed on behalf of the Republic of Rwanda by H.E. Mr. Claver Gatete - Minister of Finance and Economic Planning and on behalf of the Fund by Mr. Hesham Al-Waqayan, Deputy Director-General of the Kuwait Fund for Arab Economic Development in attendance of Mr. Abdul-Rahman Al-Hashim, Regional Manager for Central, East and South African countries. 

 

The aim of the Project is to enhance the economic and social development of the Northern and Eastern Provinces of Rwanda, and at the same time to participate in linking Rwanda with the Republic of Uganda and the Democratic Republic of the Congo.

 

                          The Project consists of construction works to attain an all-weather asphalted road between Nyagatare and Rukomo with an approximate length of 73 kilometers, and a width of 7 meters (in addition to 1.5 meters for shoulders on each side), and consisting of two lanes (one lane for each direction).

 

The Project consists of construction works to attain an all-weather asphalted road between Nyagatare and Rukomo with an approximate length of 73 kilometers, and a width of 7 meters (in addition to 1.5 meters for shoulders on each side), and consisting of two lanes (one lane for each direction).

 

The Project shall include the following components:

 

1. Earthworks, paving layers, bridge works, drainage facilities, safety measures, and environmental protection works.

 

2. Consultancy services for the review of the detailed engineering design and supervision of construction.

 

 

3. Institutional support consisting of providing two 4x4 vehicles, two office computers, two printers, site office furniture, and the in-land training of 15 personnel from the Implementing Agency.

 

4. Land acquisitions.

 

                        The Project is expected to be completed by mid 2019.

 

The total cost of the Project is estimated at about 79.998 million Rwandan franc, the equivalent of about KD. 32 million, of which the foreign currency is equivalent to about KD. 24 million which represents about 74.8% of the total cost of the Project.  The Fund's Loan will cover about 14% of the cost of the Project.

 

The Loan will be for a period of 25 years including 5 years grace period, and will be amortized in 40 semi-annual installments, the first of which will be due on 1^st date on which any interest or other charge on the Loan shall fall due after the elapse of the above mentioned grace period.

 

The Loan bears an interest rate at 1% per annum, in addition to 0.5% per annum to cover administrative costs and other expenses incurred in the implementation of the Loan Agreement.

 

                        The loan represents the ten loans by Kuwait Fund to the Republic of Rwanda, as the Fund already made nine loans to the Republic of Rwanda with a total amount of Kuwait Dinars 25.1 million for the financing projects in transport, irrigation and education sectors. The Fund also provided grants and technical assistance amounting in total to about Kuwait Dinars 93,000 to the Republic of Rwanda.