An International Development Association (IDA) loan of $81 million from the World Bank has been approved to support the Lake Victoria Transport Project (LVTP) in Rwanda.
The project will improve the efficiency and safety of transport of both goods and people along the regional corridor from the border crossing at Rusumo to the border crossing at Nemba and Rusizi, a road section whose current poor state cuts off the inhabitants of the area from the rest of the country during the rainy season.
Muhammad Zulfiqar Ahmed, World Bank Task Team Leader for the project said, “LVTP is expected to provide better access to rural communities living alongside the road corridor that rely almost exclusively on agriculture and livestock for their subsistence.”
The funds will also be used to upgrade Rwanda’s road asset management and road safety.
The Ngoma-Nyanza road is an important extension to facilitate transport within the country and across countries, especially from Tanzania to Southern Province of Rwanda, to Burundi and the Democratic Republic of Congo.
More than half a million people living along the corridor will directly benefit from the project which is expected to create employment through upgrading works and downstream development activities generated as a result of improved access including at least 500 permanent jobs through multi-year contracts for period maintenance of the road link.
The Rwanda project is the first in a series of three also in Tanzania and Uganda forming the Lake Victoria Transport Program. It will be implemented under the Integrated Corridor Development Initiative in the East Africa Community countries.
The IDA provides loans called credits and grants to the world’s poorest countries in support of projects and programs aimed at boosting economic growth, reducing poverty and improving people’s lives. About 50 per cent of its annual commitments, which averaged $15 billion over the last three years, come to Africa.