WASHINGTON, June 16, 2011 —The World Bank’s Board of executive Directors today approved an additional International Development Association (IDA) credit of US$11 million for the Transport Sector Development Project.
Estimated to cost a total of US$69 million, the project was supported by a complementary Africa Catalytic Growth Fund* (ACGF) grant in the amount of US$38 million (which was approved by the Regional Vice President for Africa last July 27), while the remaining US$20 million was provided by the government of Rwanda through the Road Maintenance Fund. The additional Financing raises the total financing amount to $80 million.
The objective of the project is to improve the quality of Rwanda’s paved road network and to generate sustained employment in rural areas through road maintenance works. It aims to improve road quality by:
- Restoring parts of major road corridors to good conditions through rehabilitation works on the Kigali-Ruhengeri road and maintenance works on about 50% of the 1100 km paved network;
- Establishing a system for sustainable financing of road maintenance;
- Improving management and operational efficiency in sector institutions through the establishment of management information and statistical systems, and targeted training.
The additional credit will help finance the costs associated with the financing gap due to cost overrun. It will avail funds for the completion of the rehabilitation of the Kigali-Ruhengeri road that will support Rwanda's economic and social development by improving access to markets and reducing vehicle operating costs. It will also fund the preparation of road and bridge design standards and customization of road management tools which will enhance sector governance and institutional development aspects by instilling effectiveness and efficiency in the use of resources allocated for the development and maintenance of Rwanda's road network.
The Transport Sector Development Project complements other interventions, notably the East Africa Regional Trade and Transport Facilitation Project, whose key objective for Rwanda is to facilitate Rwanda’s integration into the East African Community (EAC), and contribute to the efficiency of the country’s transport corridor through EAC countries to the ports of Mombassa and Dar-Es-Salaam.