Parliament approves over Rwf148 billion loan for Kigali-Muhanga road rehabilitation and expansion

On 14 November 2023 at 07:51

The General Assembly of the Lower Chamber of Parliament has passed a law endorsing a loan agreement of US$120,471,000 (over Rwf148 billion) between the Government of Rwanda and the Korean Exim Bank. The funds will be utilized for the rehabilitation and expansion of the Kigali-Muhanga road.

On October 20, 2023, during a cabinet meeting chaired by President Paul Kagame, the draft law approving the definitive ratification of the agreement between Rwanda and the Export-Import Bank of Korea was endorsed. The agreement, signed in Busan, South Korea, on September 13, 2023, outlines the terms of a 25-year loan with a 15-year grace period and a 0.01% interest rate.

During a session of the Lower Chamber’s General Assembly on November 13, 2023, Dr. Uzziel Ndagijimana, the Minister of Finance and Economic Planning, provided insights into the project.

The initiative involves two phases, with the road set to feature four lanes and a dedicated section for trucks, particularly along the stretch from Nyabarongo to Bishenyi, aimed at improving traffic flow.

Expressing concerns over compensatory measures for activities affected by infrastructure construction, Parliamentarian Diogène Bitunguramye inquired about the availability of funds for compensations and expropriations to prevent potential delays and related issues.

Minister Ndagijimana assured the Lower Chamber that the costs for compensations would be incorporated into the national budget. He expressed confidence that there would be no impediments hindering the project’s progress. Additionally, Minister Ndagijimana outlined the project’s scope, which includes the rehabilitation of a 45-kilometer-long road and the expansion of a 12.2-kilometer section to four lanes.

The government also plans to construct 11.9 kilometers of additional roads dedicated to large trucks, aiming to optimize traffic flow. The project encompasses the construction of two bridges, water distribution systems, and the installation of road lights.

The Kigali-Muhanga road, last rehabilitated in 2000, has witnessed deterioration in various sections, according to the Rwanda Transport Development Agency (RTDA).

While the initial study plan has been completed, awaiting the final one that specifies the relocation of individuals, the amount for expropriation, and other critical aspects, the RTDA management anticipates the commencement of activities for the rehabilitation and expansion of the Kigali-Muhanga road in September 2024.

The Kigali-Muhanga road, last rehabilitated in 2000, has witnessed deterioration in various sections.