By Arnold Kwizera
Rwanda’s parliament has approved a loan that is going to facelift the country’s busiest neighborhood and public transport hub.
Nyabugogo’s flooding problem during the rainy season will be permanently sorted after lawmakers today’s approved a loan agreement between the government of Rwanda and the Export and Import Bank of China.
The loan amounting to 488 Million Chinese Yuan (CNY) equivalent to Rwf 58.7 billion will fund extension works for four road networks in Quartier Commercial, Kiyovu and Nyabugogo.
The amount is payable over a thirteen years period at an interest rate of two percent per annum and a grace period of seven years.
Nyabugogo-a major public transport terminal in Kigali receives at least 250,000 passengers every day from across the country and thousands tons of goods.
A recent study conducted by the ministry of disaster management in conjunction with Rwanda Environment management authority REMA noted that traders conducting business in the area incurred losses estimated at Rwf 178.2 million.
According to surveyors, the flooding greatly affects businesses operating in the area as it exceeded their annual profits by 23 percent.
Businesses had an estimated total profit of Rwf633.1million annually, but an annual damage cost them Rwf620, 000 meaning flooding seriously threatens their survival of the business operations.
Dealers in cars, food stuffs and spare parts were among those affected by the Nyabugogo floods.
Rwanda is raising fund to build 105km of tarmac road network in the next three years in City of Kigali. For this financial year, 26km will be built.