On 22nd March 2018: The Government of Rwanda and Government of Japan today signed a financing agreement worth 7.670 billion yen (around 68 million USD or Frw57 billion) for the Ngoma-Ramiro road upgrading project.
This project will upgrade and pave the unpaved 53 kilometer road between Ngoma and Ramiro. The road is of regional importance since it connects Rwanda to the neighboring countries such as Burundi and DRC. The improvement of Ngoma-Ramiro road will contribute to revitalize regional transportation from the Indian Ocean through the Central Corridor, namely from Tanzania (Dar es Salaam) to Rwanda.
The road is also expected to function as a by-pass and main road for transport of goods from Dar Es Salaam Port to Kigali, supplementing the congested Ngoma-Kayonza Kigali Road. Since the New Bugesera International Airport under construction is located in the area, this project has an enormous synergy effect on further economic development in Rwanda. Furthermore, considering that most inhabitants in the Ngoma-Ramiro area are engaged in the forestry and farming industries, the improvement of the road will also benefit the local communities by boosting local employment and improving social services such as education and health as well as facilitating sustainable trade of local crops from the area.
Speaking after the signing, the Minister of Finance and Economic Planning Claver Gatete said: “This support is of immense value as it will contribute to easing cross border trade especially given the fact that it would connect the central corridor to the northern corridor.”
Mr. Hiroyuki Takada, Chief Representative of Japan International Cooperation Agency in Rwanda said “Regional integration in Africa is one of the priority areas of Japan. The efficiency on the border post such as time required for clearing vehicles of goods has been drastically reduced.”
The implementing agency of this project is Rwanda Transport Development Agency (RTDA). The implementation period is expected to be 24 months. The loan repayment period is 40 years with the interest of 0.01% per year, 10 years of grace period, under ODA concessional conditions. The project was officially launched on 8th February 2018.
Japan has also supported the Construction of Rusumo International Bridge as well as One Stop Border Post (OSBP) Facilities in 2016 to make border procedures more efficient. The OSBP began operations on March 1st, 2016