East African Rail Project to Cost U.S.$5 Billion

East African Rail Project to Cost U.S.$5 Billion

The proposed railway line linking Rwanda, Burundi and Tanzania will cost US$5 billion, a preliminary study indicates.

This cost includes construction of new railway lines and the rehabilitation of the existing ones, said Dr. Frederick Addo-Abedi, the Managing Director of the Rwanda Transport Development Agency (RTDA).

“The actual cost will be determined after the detailed design. The project is expected to be funded by a Public-Private Partnership (PPP),” he said.

Dr. Addo-Abedi explained that the whole project comprises of: rehabilitation of the existing Dar es Salaam-Isaka line (980km) and construction of a new 494 km Isaka-Kigali (355km in Tanzania and 139km in Rwanda).

A new 197 km line will also be constructed from Isaka to Gitega and Musongati through Keza, in Burundi.

The procurement process for the detailed design is ongoing and expected to be complete by the end of July.

A detailed Study is expected to start by July and “will focus more in deepening the institutional framework and structuring the project in the form of a PPP.”

According to Dr. Addo-Abedi, the detailed study may be completed by Mid 2012 and the construction phase is expected to start by the end of 2012 with a timeframe of 4-5 years, for completion.

The project is funded by the African Development Bank (AFDB).

Rwanda is leading the coordination, Tanzania is chairing while Burundi occupies the deputy chair.