The Rwanda Transport Sector Development Project is a $49 million operation co-financed by IDA ($11 million) and the ACGF ($38 million). Approved by both the Bank's Board of Executive Directors and the Africa Regional Vice-President, the Project is expected to improve the quality of Rwanda's paved road network and generate sustained employment in rural areas through road maintenance works. The project was declared effective on December 27, 2007.

Rwanda qualifies for ACGF support since: (a) it has been able to maintain overall macro stability, consistent over the past five years, and implement extensive reforms which have contributed to the high levels of growth observed during the post-conflict decade of recovery; and (b) the project targets a binding constraint to growth (transport).

In addition to $11 million in IDA financing, the project is expected to crowd in funding from the African Development Bank, European Union and the Government of Rwanda in the amount of $236 million.