About $355m (Frw191,629 billion) will be spent on the road connecting Rwanda to Burundi.
The move is to facilitate the movement of people and goods between the two sister countries.
The stretch that starts from Ruhwa goes through Ntendezi, Kibuye and Gisenyi.
According to a plan from Ministry of Infrastructure, part of the road from Bujumbura to Ruhwa will be rehabilitated while the stretch from Ntendezi to Kibuye and Gisenyi will be tarmacked.
STUDI International, a Tunisian firm is carrying out a study to pave the way for tendering process.
Sources in the Ministry of Infrastructure close to The New Times say government might spend Frw800 million on the studies alone.
The source said the African Development Bank (ADB) has expressed interest to support the project.
However, when development partners meet in October, the project could attract more funding.
In the last three years, ADB has also financed three road projects in Rwanda valued at $73.320m (Frw39,578 billion).
Some of them include Gitarama-Ngororero road, Kigali-Bujumbura road via Bugesera district.
The bank funded the rehabilitation of Cyangugu-Bugarama road, Gashora bridge and rehabilitation study of Butare- Cyangugu road.
ADB financed a feasibility study of the Dar-Isaka-Kigali and Burundi railway link.