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AfDB approves $245 million for Uganda-Rwanda transport project

Staff writer |
The African Development Bank (AfDB) approved $245 million in loans and grants to Uganda and Rwanda to finance a transport project that will boost regional trade and decongest traffic from Kampala (Busega) to Mpigi.

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Uganda and Rwanda are landlocked countries and transport infrastructure is a key factor to stimulate socio-economic activities and improve competitiveness.

In Uganda, the bank’s $151 million will finance the construction of a 23.7-kilometre expressway, which will facilitate the journey between Kampala (Busega) and Mpigi on the Northern Corridor, a major trade route in the region.

In Rwanda, the $94-million Bank loan will finance the rehabilitation of a 208-km road (Kagitumba-Kayonza-Rusumo) in eastern Rwanda.

These roads are vital links, which support the regional integration objectives of the East Africa Community (EAC) and the Great Lakes Region, contributing to poverty reduction and regional integration across Uganda, Rwanda and Tanzania.

The project also includes the construction of two cross-border markets at Kagitumba and Rusumo; training of women traders and entrepreneurs.

In Uganda, the existing Busega-Mpigi road is highly congested especially at Busega, handling over 26,000 vehicles per day on a two-lane road. Average vehicle travel time from Busega to Mpigi will be reduced from one hour to 20 minutes on the completion of the project.

In Rwanda, the average vehicle travel time on the Kagitumba-Kayonza-Rusumo road will be reduced by 50%, from six to three hours. The road construction will be completed in 2½ years.

The direct beneficiaries of the project are traders and transporters who use the Northern Corridor via Mirama Hills/Kagitumba and the Central Corridor, via Rusumo and the 2.14 million people living within the Busega-Mpigi and Kagitumba-Kayonza-Rusumo areas.

The total project cost is estimated at $376.5 million, co-financed by AfDB ($244.6 million), Japan International Cooperation Agency ($56.3 million), European Union ($22.4 million) and the Governments of Uganda and Rwanda ($53.2million).

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