The city of Kigali has instructed the National Industrial Research and Development Agency (NIRDA) to relocate Rwanda’s bio-diesel project at Mulindi. 

In a letter to NIRDA director general Dr Joseph Mungarulire dated May 4, the city authority says the plant located in Nyarugunga sector, Kicukiro District occupies an area designated for residential houses as per City Master Plan.

"Reference is made to the master plan zoning guidelines, which propose the area where bio-diesel plant is located as an R2A zone for low-rise residential district… which will allow higher building coverage and higher density low-rise development in suburban new towns,” the letter from the city authority to NIRDA reads in part.

The notice, signed by City of Kigali mayor Fidele Ndayisaba, indicates that the authority has already approved several residential projects near the plant, noting that its presence in the neighbourhood would compromise the existence of residential developments "as envisaged by the City Master Plan”.

"…therefore, kindly request to know the intended time for relocating the plant to allow optimum use of the land in that area,” the notice added.

Commenting on the development, Mungarulire said NIRDA is engaging the city authority to allow them time to look for funding to relocate the project and set up an institute. "We want the mayor to give us an opportunity to raise funds to build our own structure…we want to build an industrial institute,” he said.

"Maybe we can go to where there are raw materials to cut on the cost of transportation…that makes more business sense,” Mungarulire said.

The viability of the bio-diesel project is in balance after recent studies by NIRDA discovered that using imported raw materials (palm oil) from Bukavu in the DR Congo is not sustainable.

It was also found that the alternative oil-producing plants, jatropha, which could be used as an alternative does not grow well in Rwandan soil.

It’s challenges were compounded by the drop in oil prices on the global market.

Recently, government also said it was considering whether to abandon the project.

The plant was started by the former Industrial Research and Science Technology (IRST) and was working as a pilot project. It last produced bio-diesel in 2012 before operations were suspended due to lack of reagents used in oil making bio-diesel. stephen.nuwagira@newtimes.co.rw