File photo shows workers of China's Sinohydro Corporation Limited work at the construction site of the Huye-Kibeho-Munini Road Upgrading Project in Huye district, Southern Province of Rwanda, on May 31, 2019. (Xinhua/Sinohydro Corporation Limited)

KIGALI, June 18 (Xinhua) -- China and Rwanda on Tuesday signed an agreement on economic and technical cooperation in Rwandan capital city Kigali, under which the Chinese government will provide the Rwandan government a grant of 42 million U.S. dollars for projects to be agreed upon by the two sides.

The agreement was signed by Rao Hongwei, Chinese Ambassador to Rwanda, and Claudine Uwera, Minister of State in charge of Economic Planning in Rwanda's Ministry of Finance and Economic Planning.

The grant is expected to partly address the funding demand of a China-aided 10-kilometer road project in Kigali, linking the city center, Masaka area and the eastern part of the country.

The project will play a vital role in Kigali's economic development, reducing commuting time, operating expenses and accidents, promoting Kigali's business ecosystem and providing new momentum for developing the inland container depot and logistics hub in Masaka, said Rao during the signing ceremony.

"As a sincere friend and reliable partner of Rwanda, China is willing to enhance practical economic cooperation through strengthening communication and coordination," he said, noting that China will continue to provide assistance in infrastructure construction, industrialization and agricultural modernization to improve the economic and social development of Rwanda.

The cooperation between the Rwandan government and the Chinese government has grown from strength to strength over the years, and the Chinese government has been active in Rwanda's infrastructure sector, said Uwera.

"The government of Rwanda appreciates the support from the government of China, and looks forward to strengthening the cooperation between the two countries," she said.