Recently the World Bank’s Board of executive Directors approved an $11 million grant for the Transport Sector Development Project. The purpose of this project is to improve the quality of Rwanda’s paved road network and provide sustained employment through road maintenance. The estimated total cost of the project is $69 million. An Africa Catalytic Growth Fund grant is also supporting the project, providing $38 million.
There are three ways in which the project hopes to improve Rwanda’s road quality. The first is by restoring major parts of road corridors to good condition. The second is creating a system for sustainable financing of road maintenance. The third is improving management and operational efficiency in sector institutions. It plans to do this through the establishment of management information, statistical systems, and targeted training.
The project will help the country with national integration and economic growth. The improved network of roads will save time and money for national and international road travelers. Agricultural producers and businesses will save as well.
Paved road rehabilitation and maintenance is the project’s largest component. It is valued as $62.4 million and it will help the country develop as an exporter by strengthening international roads. Over 600 kilometers of road will be rehabilitated. The other components of the project are sector governance and policy support, sector analysis and planning support, and project management support.
I think that this project will definitely help the country grow economically. It will be able to import and export more goods. However $69 million seems like a lot of money just to rehabilitate roads. One concern in my mind it the type of employment that will be created by this project. What labor will be used to rehabilitate these roads? What types of conditions will they be working in? Will they be paid descent wages, or a few pennies each day?
Source: http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:21456147~pagePK:34370~piPK:34424~theSitePK:4607,00.html
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