News Column

Saudi Fund Finances Huye-Kitabi Road Construction

May 26, 2014

Edwin Musoni

The Saudi Fund for Development yesterday signed a financing agreement with Rwanda worth $14 million (Approx. Rwf9.6 billion) for the construction of a 53.5 km Huye-Kitabi road that links Rwanda to DR Congo and Burundi.

The financing agreement was signed by Minister for Finance, Amb Clever Gatete, and the Managing Director of the Fund, Eng Yousef Al-Bassam, on the sideline of the just-concluded African Development Bank (AfDB) Annual Meetings.

The road will connect Huye, Nyamagabe, Rusizi and Nyamasheke districts in both the Western and Southern provinces of Rwanda.

"This is a concessional loan repayable in 30 years with a 10-year grace period and an interest rate of one per cent," said minister Gatete.

He added that since the road connects two borders, it will help boost cross-border trade as well as access to production zones and markets, especially for agricultural products.

"Once this road is complete, it will foster socio-economic development particularly through the development of agriculture and tourism," Gatete said.

Speaking after the signing, Eng. Al- Bassam said: "We are happy to contribute towards infrastructure development of Rwanda and continue to be partners in the long run."

The Kitabi-Huye road project which is linked to Kitabi-Congo-nil road, has already secured financing from Badea worth $10 million, OPEC Fund for International Development (OFID) worth $12 million and the government counterpart financing of about $4million.

The loan will cover the total cost for the construction of the entire road.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: AllAfrica

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters