Rwanda and Tanzania have agreed on joint construction of a Standard Gauge Railway (SGR) from Isaka (northwestern Tanzania) to Kigali in Rwanda.
The development comes after Rwandan president Paul Kagame toured Tanzania yesterday in a one day official visit.
Tanzanian President John Magufuli said that infrastructure ministers of the two countries will meet next week to plan on the a proper financial model of the project.
“We want the construction to start immediately because the feasibility studies and designs are complete,” Magufuli said.
The 400 km Standard Gauge Railway from Isaka to Kigali will help boost trade between the two countries as it will connect Rwanda to Dar es Salaam port.
The railway project is set to cost Rwanda between US$800 to $900 million,Studies conducted by the East African Community (EAC) have shown.
Plans are also underway to construct another standard gauge railway line from the port of Mombasa in Kenya via Uganda to Rwanda expected to cost about US$1 billion.
Rwanda says the projects are intended to increase efficiency and reduce cost of transport of goods.